PSU OMCs decline as crude boils

Three PSU OMCs lost 4.63% to 7.54% at 14:02 IST on BSE as US crude oil futures surged on supply concerns as violence escalated in Iraq, the second-largest oil producer in OPEC.

HPCL (down 7.54% at Rs 394.95), Indian Oil Corporation (down 6.55% at Rs 328), and BPCL (down 4.63% at Rs 571.30) edged lower.

Meanwhile, the S&P BSE Sensex was down 300.45 points or 1.17% at 25,275.76.

US crude oil futures for July delivery rose 84 cents to $107.37 a barrel in electronic trade today, 13 June 2014. The contract had jumped $2.13 or 2.04% to settle at $106.53 on the New York Mercantile Exchange on Thursday, 12 June 2014.

Crude rose as supply disruption fears took centre stage with the United States threatening military action in Iraq as supply disruption fears took centre stage with the United States threatening military action in Iraq as Sunni Islamist militants moved south towards Baghdad.

Higher crude oil prices will increase under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.

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