Shares of oil and gas companies are trading higher by up to 4% on the BSE in otherwise volatile market after Brent crude fell below $109 a barrel as Libya restarted an oilfield.
All three listed state-owned oil marketing companies – Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) – have gained more than 2%, while GAIL (India), Oil India, Reliance Industries and ONGC are up 1-2% on the BSE.
At 1040 hours, S&P BSE Oil and Gas index, the largest gainer among sectoral indices, was up 1% compared to a marginal 0.12% rise in benchmark S&P BSE Sensex.
Brent crude fell to $108.82 a barrel on Wednesday as Libya restarted an oilfield, on track to drop for an eighth session in what would be its longest losing streak in over four years, the Reuters report suggests.
Brent has fallen nearly 6% since the Iraq crisis drove prices to a nine-month high of $115.71 in June. Easing worries over possible disruptions to supply from the conflict in Iraq also dragged on prices, added report.
Lower crude oil prices will decrease under-recoveries of state-run oil marketing companies on domestic sale of diesel, LPG and kerosene at government controlled prices.
Among individual stocks, HPCL has rallied 4% to Rs 402 whereas IOC and BPCL are up 2% each at Rs 338 and Rs 579 respectively.
All three listed state-owned oil marketing companies – Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) – have gained more than 2%, while GAIL (India), Oil India, Reliance Industries and ONGC are up 1-2% on the BSE.
At 1040 hours, S&P BSE Oil and Gas index, the largest gainer among sectoral indices, was up 1% compared to a marginal 0.12% rise in benchmark S&P BSE Sensex.
Brent crude fell to $108.82 a barrel on Wednesday as Libya restarted an oilfield, on track to drop for an eighth session in what would be its longest losing streak in over four years, the Reuters report suggests.
Brent has fallen nearly 6% since the Iraq crisis drove prices to a nine-month high of $115.71 in June. Easing worries over possible disruptions to supply from the conflict in Iraq also dragged on prices, added report.
Lower crude oil prices will decrease under-recoveries of state-run oil marketing companies on domestic sale of diesel, LPG and kerosene at government controlled prices.
Among individual stocks, HPCL has rallied 4% to Rs 402 whereas IOC and BPCL are up 2% each at Rs 338 and Rs 579 respectively.
