OMCs unlikely to be impacted by US withdrawal of sanction waiver

Analysts say firms can source oil from other countries, but investors need to be conscious about rising crude prices

OMC, oil
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Stocks of oil marketing companies or OMCs, which includes Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum, fell 5–7 per cent on Monday, following the news that the US may not renew exemptions from its sanctions to buyers of Iranian crude after they expire on May 2.   Calling the stock price movement as a knee-jerk reaction to the global development, analysts say the event may not alter the financials of Indian OMCs much. “I do not expect a significant impact to earnings for OMCs, as on a comparable basis — in terms of grade and price — companies ...