PSU OMCs decline as crude oil price increases

Shares of three state-run oil marketing companies fell 1.62% to 2.84% at 13:50 IST on BSE after Brent crude prices firmed up in international market.

Meanwhile, the S&P BSE Sensex was up 138.17 points or 0.35% at 39,184.15.

Hindustan Petroleum Corporation (down 2.84%), Indian Oil Corporation (down 2.44%) and Bharat Petroleum Corporation (down 1.62%), declined.

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.

Brent Crude oil prices rose on Wednesday, rekindled by hopes for a US-China trade deal and potential economic stimulus from the European Central Bank (ECB).

In the commodities market, Brent crude for August 2019 settlement was up 22 cents at $62.36 a barrel. The contract rose $1.20, or 1.96% to settle at $62.14 a barrel during the previous trading session.

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