Shares of three PSU OMCs rose from 1.48% to 3.47% after international crude oil prices slumped amid weak Chinese demand.
PSU Oil Marketing Companies (OMCs), Hindustan Petroleum Corporation (up 2.95%), and Indian Oil Corporation (up 3.47%) and Bharat Petroleum Corporation (up 1.48%) advanced.In the commodities market, Brent crude for April 2020 settlement was up 22 cents at $54.67 a barrel. The contract tumbled 3.83% to settle at $54.45 a barrel in the previous trading session. In last five trading session, brent crude has lost 9%.
Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Crude oil prices fell to its lowest level in more than a year on concerns of the Coronavirus outbreak and its potential impact on demand. China is world's largest crude importer.
Following the crash in oil prices, OPEC members are reportedly planning an emergency meeting for considering large production cut.
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