PSU OMCs gain as crude oil tanks to five year low

Shares of three public sector oil marketing companies rose by between 0.42% to 1.4% at 10:00 IST on BSE as global crude oil prices extended recent steep losses.

Meanwhile, the BSE Sensex was down 18.06 points, or 0.06%, to 28,101.34.

Among PSU OMCs, BPCL (up 0.42%) and HPCL (up 1.28%) gained.

Indian Oil Corporation (IOCL) rose 1.4%. Minister of State (Independent Charge) for Petroleum & Natural Gas Dharmendra Pradhan informed the Lok Sabha in a written reply yesterday, 8 December 2014, that IOCL has planned to set up Liquefied Natural Gas (LNG) import, storage and regasification terminal with a capacity of 5 million metric tonne per annum (MMTPA) at Kamrajar Port (formerly Ennore Port) in Tamil Nadu. The terminal is planned to be commissioned by end of 2017-18. IOCL presently does not have any proposal to set up a gas pipeline from Paradip to Vishakhapatnam, Pradhan said.

Lower crude oil prices could reduce 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.

Brent crude slipped to its lowest level in five years today, 9 December 2014, dropping below $66 a barrel after plunging more than 4% the day before on worries over a deepening supply glut. Brent for January settlement was off 69 cents a barrel at $65.50 a barrel. The contract had lost $2.88 a barrel to settle at $66.19 a barrel during the previous trading session yesterday, 8 December 2014.

The chief executive of Kuwait's national oil company reportedly on Monday, 8 December 2014, said oil prices were likely to remain around $65 a barrel for the next six or seven months, the latest indication that Gulf producers are ready to ride out plunging prices.

Powered by Capital Market - Live News