Shares of public sector oil marketing companies (PSU OMCs) advanced as Brent crude oil prices crashed after Saudi Arabia launched an aggressive price war over the weekend.
Hindustan Petroleum Corporation (up 8.29%), Bharat Petroleum Corporation (up 5.08%) and Indian Oil Corporation (up 1.98%) were top gainers in OMC segment.
In the commodities market, Brent crude for May 2020 settlement was down $13.64 at $31.63 a barrel. The contract tanked 9.44% to settle at $45.27 a barrel during the previous trading session.
Saudi Arabia, the world's top oil exporter, said it would step up production from next month. The decision by state oil company Aramco over the weekend came in response to Russia's refusal to join an Opec plan to cut supplies. Aramco will boost its crude output significantly above 10 million barrels per day (bpd) in April, after a previous agreement to limit supplies agreed by Opec and Russia expires at the end of March.
Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app