OMCs extend losses as crude oil soars on escalating Syria tensions

Share of oil marketing companies (OMCs) — Hindustan Petroleum (HPC), Bharat Petroleum (BPC) and Indian Oil Corporation (IOC) — extended losses, falling  by six to eight per cent on Wednesday on concerns of a military escalation in Syria.

HPCL, BPCL and IOC were down over 2.5% each on the BSE. On comparison, the S&P BSE Sensex was up 0.20% at 34,000 points at 12:35 PM.

Threat of imminent US military action in Syria rattled investors and sent oil prices to their highest levels since late 2014 on concerns about potential disruptions to supply and distribution.

Trump declared that missiles “will be coming” in Syria, taunting Russia for supporting Syrian President Bashar al-Assad after a suspected chemical attack on rebels. Damascus and Moscow have denied any responsibility.

His comments raised the prospect of direct conflict over Syria for the first time between the two world powers backing opposing sides in the seven-year-old civil war, which has also escalated a rivalry between Saudi Arabia and Iran.

The OMC stocks plunged by 6%-8% on Wednesday, after reports that the government had asked them to absorb Rs 1 per litre worth of a hike in retail prices of motor fuels.