Oil hits $95: Buy paint, tyre stocks on dips, avoid aviation, say analysts

Oil prices climbed towards their highest levels in more than seven years on Monday on fears that a possible invasion of Ukraine by Russia could trigger sanctions (on the latter) from US and Europe

Rising crude oil prices is becoming a sore point for sectors such as tyres, paints, and airlines, which are heavily dependent on crude oil and derivatives as their raw material.

Analysts say, the near-term outlook for related companies has worsened as their operating margins may come under pressure in the coming quarters given that crude and its derivatives account for 30 to 50 per cent of operating costs.

"Soaring crude oil prices are inwardly negative for oil market companies (OMCs), paints, tyre and aviation-related stocks as these companies are either raw materials or form major product mix for the production