Shares of three state-run oil marketing companies fell 1.96% to 2.95% at 12:00 IST on BSE after Brent crude oil prices climbed above $65 a barrel mark.
Meanwhile, the S&P BSE Sensex was down 110.73 points or 0.33% at 33,345.06.
HPCL (down 2.95%), BPCL (down 1.96%) and Indian Oil Corporation (down 2.09%) edged lower.
Brent crude oil prices jumped above $65 per barrel for the first time since 2015 after the shutdown of the Forties North Sea pipeline knocked out significant supply from a market that was already tightening due to Organization of Petroleum Exporting Countries (OPEC)-led production cuts. In the global commodities markets, Brent for February 2018 settlement was up 85 cents at $65.54 a barrel. The contract had risen $1.29 a barrel, or 2.03% to settle at $64.69 a barrel during the previous trading session.
Higher crude oil prices could increase under-recoveries of public-sector undertaking oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
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