PSU OMCs gain on fall in crude oil prices

Shares of two public sector oil marketing companies rose by 0.78% to 1.55% at 13:35 IST on BSE on fall in crude oil prices.

Meanwhile, the S&P BSE Sensex was up 131.61 points or 0.47% at 28,041.67

BPCL rose 0.78% ahead of its Q2 results today, 12 November 2014.

HPCL gained 1.55%.

Indian Oil Corporation declined 0.91%.

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 futures fell amid signs that OPEC members are reluctant to reduce supply even as prices slump. Brent for December delivery was off 71 cents at $80.96 a barrel. The contract had fallen 67 cents a barrel to settle at $81.67 a barrel during the previous trading session on Tuesday, 11 November 2014, the lowest price since October 2010. Brent for January 2015 delivery was off 39 cents at $81.62 a barrel.

Meanwhile, state run oil marketing firms reportedly plan to cut petrol rates for the seventh time since June 2014 and diesel for the third time since the fuel was decontrolled on 18 October in next revision due on 16 November 2014, as Indian consumers gain from the sharp fall in global oil prices before polls in Jharkhand and Jammu & Kashmir. PSU OMCs review fuel prices on 1st and 16th of every month based on the average imported oil price in the previous fortnight.

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