Shares of public sector oil marketing companies (PSU OMCs) advanced as Brent crude oil prices crashed after Saudi Arabia launched an aggressive price war over the weekend.
Hindustan Petroleum Corporation (up 8.29%), Bharat Petroleum Corporation (up 5.08%) and Indian Oil Corporation (up 1.98%) were top gainers in OMC segment.
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In the commodities market, Brent crude for May 2020 settlement was down $13.64 at $31.63 a barrel. The contract tanked 9.44% to settle at $45.27 a barrel during the previous trading session.
Saudi Arabia, the world's top oil exporter, said it would step up production from next month. The decision by state oil company Aramco over the weekend came in response to Russia's refusal to join an Opec plan to cut supplies. Aramco will boost its crude output significantly above 10 million barrels per day (bpd) in April, after a previous agreement to limit supplies agreed by Opec and Russia expires at the end of March.
Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
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