Oil E&P stocks slide alongside fall in global crude oil prices

Stocks of four companies involved in oil exploration & production activities fell 0.01% to 1% at 14:44 IST on BSE as global crude oil prices dropped.

ONGC was off 0.6% at Rs 211.90. Cairn India was off 1% at Rs 138.35. Oil India was off 0.01% at Rs 350.23.

Index heavyweight Reliance Industries was off 0.6% at Rs 973.40.

Meanwhile, the S&P BSE Sensex was off 50.46 points or 0.19% at 26,346.31.

Lower crude oil prices will result in lower realization from crude oil sales for oil exploration & production (E&P) firms if the prices are sustained at lower level.

Crude oil prices edged lower on risk aversion in global markets ahead of a referendum in UK on 23 June 2016 that could end Britain's membership in the European Union. Brent for August 2016 settlement was currently off 65 cents or 1.29% at $49.70 a barrel. In addition to the so called Brexit referendum, uncertainty before three major central bank monetary policy meetings this week in the US, Japan and Britain also weighed on sentiment in global markets. Brexit refers to the referendum on 23 June 2016 by British voters to decide whether the country should remain a member of the European Union or leave it.

The Brent August contract lost 19 cents or 0.37% to settle at $50.35 a barrel yesterday, 13 June 2016.

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