PSU OMCs surge as crude oil prices slump

Shares of public sector oil marketing companies (PSU OMCs) advanced after Brent Crude oil prices crashed to trade near $22 a barrel mark.

Hindustan Petroleum Corporation (up 11.54%), Bharat Petroleum Corporation (up 10.9%) and Indian Oil Corporation (up 5.36%) surged.

In the commodities market, Brent crude for May 2020 settlement was down 18 cents at $22.58 a barrel. The contract tanked 8.7% to settle at $22.76 a barrel 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. The government has already freed pricing of petrol and diesel.

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