OMC gain as crude oil nears 4-mth low
BPCL, HPCL and Indian Oil are trading higher by 1-2% in otherwise weak market in morning trades
Shares of oil marketing companies – BPCL, HPCL and Indian Oil are trading higher by 1-2% in otherwise weak market in morning trades after Brent crude touches its lowest level in more than three months.
“Brent crude lost $1.38 to $111.80 a barrel by 0228 GMT, after touching a low of $110.34, its lowest since late January. The benchmark contract fell 2.5% on Friday,” the Reuters report suggests.
Crude oil accounts for about 95% of the cost of producing petroleum products as a result of which the oil companies start piling up losses the moment imports turn costlier.
Among the individual stocks, HPCL and BPCL are trading higher by 2% each, while Indian Oil is up 1.2% on the Bombay Stock Exchange.