PSU OMCs gain as crude oil prices resume decline

Three public sector oil companies rose by 0.12% to 1.54% at 14:40 IST on BSE after crude oil prices resumed its downward slide today, 8 July 2015.

Meanwhile, the S&P BSE Sensex was down 371.43 points or 1.32% at 27,800.26.

Among PSU OMCs, HPCL (up 0.64%), BPCL (up 0.12%) and Indian Oil Corporation (up 1.54%) edged higher.

In global commodities markets, Brent crude oil futures edged lower after registering small gains yesterday, 7 July 2015. Brent for August settlement was currently down 66 cents at $56.19 a barrel. Brent crude oil futures for August delivery had gained 31 cents or 0.54% to settle at $56.85 a barrel yesterday, 7 July 2015. Brent crude oil futures for August delivery had slumped $3.78 a barrel or 6.26% to settle at $56.54 a barrel on 6 July 2015.

Crude oil futures fell again today, 8 July 2015, as worries over the Greek debt crisis and China's stock market turmoil outweighed an expected US inventory drop, with traders anticipating further drops.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 63.53, compared with closing of 63.46 during the previous trading session.

Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already freed pricing of petrol and diesel.

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