Aban Offshore hits 10-month low

In past one month, the stock declined 30% to Rs 419 from Rs 600 on BSE, as compared to less than 3% decline in Sensex.

Shares of Aban Offshore have dipped 6% to Rs 419, extending its month-long decline on BSE, due to falling crude oil prices.The stock opened at Rs 441 and touched a low of Rs 419 on BSE so far.

In past one month, shares of oil exploration and production (E&P) firm declined by 30% from Rs 600 on November 14, as compared to less than 3% fall in the benchmark S&P BSE Sensex. It has been declined more than 50% from its 52- week high of Rs 940 touched on July 8, during intra-day trade.

Oil fell to fresh lows not seen since July 2009 on Friday with Brent crude slipping towards $62 a barrel on concerns over a global supply glut and weak demand. Brent was down more than nine per cent last week, taking its fall since a June peak above $115 to 45%, the Reuters report suggests.

According to market experts, low commodity prices and global economic weakness which could impact capex budgets of E&P companies and oilfield services demand.

Falling crude price means offshore companies would find it uneconomical to further expand and exploration and even produce at current levels.