Shares of three PSU OMCs rose by 1.27% to 1.67% at 10:30 IST on BSE after crude oil prices eased as fears of an immediate armed conflict in Ukraine receded.
BPCL (up 1.67%), Indian Oil Corporation (up 1.42%) and HPCL (up 1.27%), edged higher.
The S&P BSE Sensex was up 39.43 points, or 0.19% at 21,249.16.
New York's main contract, West Texas Intermediate (WTI) for April delivery, was up 11 cents, or 0.11% at $103.44 in mid-morning Asian trade, while Brent North Sea crude for April eased 17 cents, or 0.16% to $109.13.
On Tuesday, 4 March 2014, Brent crude finished down $1.90, or 1.71%, at $109.30 per barrel, while US oil futures settled down $1.59, or 1.52%, at $103.33 a barrel. The sharp fall was triggered by Russian President Vladimir Putin declaring in a news conference that there was currently "no need" to send troops into Ukraine.
The standoff between Moscow and the West over Ukraine has been the main focus of oil investors this week as more than 70% of Russia's oil exports to Europe pass through the ex-Soviet state. Russia, which produced 10 million barrels a day in January, vies with Saudi Arabia as the world's largest oil producer, and is the second-largest producer of natural gas.
Lower crude oil prices will reduce underrecovery of PSU OMCs (public sector oil marketing companies) on domestic sales of diesel, kerosene and LPG at government controlled prices.
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