Oil PSUs gain as global crude oil prices ease

HPCL, BPCL and IOC were up 1-3% on hopes under recoveries on sale of diesel and cooking fuels would reduce as global crude oil prices eased

Shares of state-owned oil marketing companies such as HPCL, BPCL and Indian Oil Corp were up 1-3% on hopes that under recoveries on sale of diesel and cooking fuels such as LPG and kersosene would be lower after global crude oil prices eased to 4-year lows.

Brent crude oil for November delivery on Wednesday dropped to $83.37, the lowest intra-day level since November 2010, before recovering to nearly $84 a barrel.

According to latest data, the Indian basket of crude oil has fallen to $87.46 a barrel, almost $10 lower than the average so far this year.

Currently, state-owned oil marketing companies such as Hindustan Petroleum, Bharat Petroleum and Indian Oil Corp sell diesel and cooking fuels such as LPG and kerosene at government controlled rates.