PSU OMCs fall, oil E&P stocks gain on higher crude oil prices

Shares of three oil exploration & production firms rose 1.03% to 2.87% and two public sector oil marketing companies fell 0.23% to 0.34% at 10:38 IST on BSE on higher global crude oil prices.

Among oil exploration & production (E&P) stocks, Cairn India (up 2.87%), Oil India (up 1.31%), ONGC (up 1.03%) and Reliance Industries (up 2%) edged higher.

Among public sector oil marketing companies (PSU OMCs), HPCL (down 0.23%) and BPCL (down 0.34%) edged lower. Indian Oil Corporation (up 0.29%) edged higher.

Meanwhile, the S&P BSE Sensex was up 278.56 points or 1.05% at 26,759.81.

Brent crude oil futures edged higher today, 10 June 2015, as US crude and gasoline inventories fell more than expected and the Energy Information Administration (EIA) raised its 2015 oil demand growth forecast. Brent for July settlement was up 49 cents at $65.37 a barrel. The contract had jumped $2.19 a barrel or 3.49% to settle at $64.88 a barrel during the previous trading session.

Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

Higher crude oil prices will result in higher realization from crude sales for oil exploration firms.

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