PSU OMCs rally as crude oil tumbles

Three PSU OMCs surged 5.61% to 9.57% at 10:24 IST on BSE as Brent crude oil futures slipped to a four-year low after the Organization of Petroleum Exporting Countries refrained from reducing output.

HPCL (up 9.57% at Rs 600.30), BPCL (up 6.28% at Rs 765.30), and Indian Oil Corporation (up 5.61% at Rs 368.85) edged higher.

Meanwhile, the S&P BSE Sensex was up 284.26 points or 1% at 28,723.17.

Brent crude oil futures further slipped today, 28 November 2014 after sinking to a four-year low, yesterday, 27 November 2014, after the Organization of Petroleum Exporting Countries (OPEC) refrained from reducing output. Brent for January 2015 settlement slipped 12 cent at $72.46 a barrel. Brent for January 2015 settlement had dropped $5.17 a barrel to finish at $72.58 a barrel during the previous trading session, the lowest close since August 2010.

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.

Powered by Capital Market - Live News