Shares of three public sector oil marketing companies rose 1.31% to 2.71% at 13:07 IST after slide in global crude oil prices yesterday, 5 January 2016.
HPCL (up 2.71%), Indian Oil Corporation (up 2.17%) and BPCL (up 1.31%) edged higher.
Decline in crude oil prices could reduce under-recoveries of public sector oil marketing companies (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.
In the global commodities markets, Brent for February settlement was currently down 20 cents at $36.22 a barrel. The contract had lost 80 cents or 2.14% to settle at $36.42 a barrel during the previous trading session amid concerns about an expanding global supply glut.
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