Pradhan has telephonic talk with Saudi Energy Minister, expresses concern over rising crude oil prices
Shares of state-run oil marketing companies declined after crude oil prices jumped in the international commodity market.
Hindustan Petroleum Corporation (down 2.96%), Bharat Petroleum Corporation (down 2.59%) and Indian Oil Corporation (down 1.28%) tumbled.
In the commodities market, Brent crude for February 2020 settlement was down 29 cents at $63.96 a barrel. The contract fell 14 cents, or 0.21%, to settle at $64.25 a barrel during the previous trading session.
Brent crude prices have risen over 5% in six sessions from its closing low of $60.82 on 3 December 2019.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and nine other allies agreed in Vienna last week to new production cuts of 500,000 barrels per day (bpd) in the first three months of 2020. This is in addition to their already existing cuts of 1.2 million bpd.
Higher crude oil prices could increase 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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