PSU OMCs witness profit booking

Shares of three public sector oil marketing companies fell by 1.41% to 4.78% at 15:07 IST on BSE as global crude oil prices traded mixed today, 26 November 2013, after trimming intraday losses on Monday, 25 November 2013.

BPCL (down 4.78%), HPCL (down 3.36%) and Indian Oil Corporation (down 1.41%), edged lower.

The S&P BSE Sensex was down 103.06 points, or 0.50% at 20,502.02.

Shares of public sector oil marketing companies (PSU OMCs) had surged on Monday, 25 November 2013, on hopes oil prices would slump after Iran clinched a nuclear deal with world powers on Sunday, 24 November 2013. On Monday, 25 November 2013, BPCL (up 4.45%), HPCL (up 6%) and Indian Oil Corporation (up 2.52%), edged higher.

Brent North Sea crude, the European benchmark, for January delivery fell 33 cents, or 30%, in Asian trade to $110.67, while New York's main contract, West Texas Intermediate (WTI) for January, was up 43 cents, or about 0.46%, at $94.52.

Iran and six world powers clinched a deal on Sunday, 24 November 2013, curbing the Iranian nuclear programme in exchange for initial sanctions relief, signalling the start of a game-changing rapprochement that could ease the risk of a wider Middle East war. Iran's oil exports will be held to about 1 million barrels a day under sanctions that remain in force after the deal. The six-month agreement, which offers Iran about $7 billion in relief from sanctions in exchange for curbs on its nuclear program, leaves in place banking and financial measures that have hampered its crude exports. Sanctions on sales of refined products also remain, while Iran gains access to $4.2 billion in oil revenue frozen in foreign banks. As part of the deal, the European Union (EU) will lift a ban on insurance for tankers transporting Iranian oil, making it easier for the Persian Gulf nation's six remaining customers to take delivery. The EU will continue to prohibit crude imports from Iran.

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