 "Oil-linked stocks trade mix after crude oil prices fall below $70/barrel")
Oil-linked stocks traded mixed in trade on Friday, April 4, 2025, after crude oil prices fell below $70 per barrel over US President Donald Trump's new tariffs, raising concerns over a global trade war that could weigh on oil demand.
On Thursday, Indian Standard Time (IST), Trump announced imposing 'discounted reciprocal tariffs' on US' trading partners. He also announced a 10 per cent baseline tariff across all countries.
Additionally, Organisation of Petroleum Exporting Countries and their allies (OPEC+) to advance their plan for oil output increases, with the organisation now aiming to return 411,000 barrels per day to the market in May, up from 135,000 bpd as initially planned, also weighed on sentiments.
Last seen, Brent crude oil futures were down 0.97 per cent at $69.46 per barrel.
Oil marketing companies (OMCs), Paint, Aviation and tyre, all oil-related stocks were a mixed bag in morning deals.
Around 11:06 AM, Bharat Petroleum shares were up 2.6 per cent. However, Indian Oil Corporation (IOC) shares were down 0.08 per cent and Hindustan Petroleum shares were down 1.06 per cent. In comparison, BSE Sensex was down 0.50 per cent at 75,914.79.
Crude oil is the primary raw material for OMCs, which are involved in the distribution and sale of petroleum products, including gasoline, diesel, jet fuel, and heating oil.
Among the paint stocks, Asian Paints shares were down 1.39 per cent, Berger Paints shares were up 0.07 per cent, Kansai Nerolac shares were down 1.34 per cent, and Akzo Nobel India were down 1.2 per cent, around the same time.
Crude oil is a key ingredient in many chemicals used in the production of paints, coatings, and related products.
Besides, among the aviation stocks, InterGlobe Aviation or IndiGo shares were up 1.79 per cent and SpiceJet shares were down 1.75 per cent.
The relationship between aviation and crude oil is vital, as jet fuel, the primary fuel used by airlines, is derived from crude oil.
Tyre-related stocks, however, slipped with JK Tyre shares down 3.65 per cent, Balkrishna Industries down 3.23 per cent and MRF down 1.33 per cent. Crude oil is a raw material used in the production of rubber and other chemicals used in the manufacturing of tyres.
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