Shares of four oil exploration and production firms fell 0.17% to 1.95% at 10:45 IST on BSE as global crude oil prices further extended losses.
Meanwhile, the S&P BSE Sensex was up 53.72 points or 0.21% at 25,098.15.
Among oil exploration and production firms, Cairn India (down 1.95%), Oil India (down 0.62%), ONGC (down 1.28%) and Reliance Industries (RIL) (down 0.17%) edged lower.
Lower crude oil prices would result in lower realization from crude sales for oil exploration firms.
Among shares of public sector oil marketing companies (PSU OMCs), BPCL (up 0.29%) and Indian Oil Corporation (up 0.94%) gained. HPCL declined 0.13%.
Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already decontrolled pricing of petrol and diesel.
Meanwhile, PSU OMCs' next regular fuel price review is due during the middle of this month. PSU OMCs review fuel prices twice a month based on the trend in international oil market and currency movement. The first review takes place during the middle of the month and the last review at the month-end.
In the global commodities markets, Brent for January settlement was currently down 23 cents at $37.70 a barrel. The contract had tumbled $1.80 a barrel or 4.53% to settle at $37.93 a barrel during the previous trading session. Brent January contract expires on 16 December 2015. Brent for February settlement was currently down 21 cents at $38.11 a barrel.
In the foreign exchange market, the partially convertible rupee was hovering at 66.98, compared with closing of 66.89 during the previous trading session.
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