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OMC stocks come under pressure over muted demand, weak refining margins

Rising Covid-19 cases in India and talks of a second wave of the pandemic globally are adding to concerns on demand for petroleum products moving forward

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The fall in crude prices would also mean lower prices for allied petroleum products.

4 min read Last Updated : Sep 30 2020 | 12:32 AM IST

Stocks of domestic oil marketing companies (OMCs) have come under pressure since late July over concerns on demand, inventory losses led by soft crude prices, and weak refining margins.

Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL) and Indian Oil (IOC) have corrected up to 22 per cent since their highs of July, while the Sensex has risen over five per cent in this period.

Rising Covid-19 cases in India and talks of a second wave of the pandemic globally are adding to concerns on demand for petroleum products. The adverse news flow is keeping the Street nervous on demand for auto, aviation fuels

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