HPCL, BPCL jump up to 9% as oil prices take a beating

Oil marketing companies jumped in Monday’s trade as crude oil plunged about 25 per cent after Saudi Arabia slashed prices and set plans for a big increase in crude production in April.

Hindustan Petroleum gained 8.56 per cent to Rs 218.05, Bharat Petroleum 5.18 per cent to Rs 423.70 while Indian Oil gained 1.98 per cent to Rs 102.

On the other hand, oil explorer ONGC plunged 10.28 per cent to Rs 78.20 and Reliance Industries tumbled 7.29 per cent to Rs 1,177.40.


Oil prices fell as much as 31 per cent following the Saudi move to start a price war after Russia balked at further making steep output cuts proposed by Opec to stabilize oil markets hit by worries over the global spread of the coronavirus.

Brent crude futures were down $11.31, or 25 per cent, at $33.96 a barrel by 0319 GMT, after earlier dropping to $31.02, their lowest since February 12, 2016. Brent futures are on track for their biggest daily decline since January 17, 1991, at the start of the first Gulf War.

US West Texas Intermediate (WTI) crude fell by $10.73, or 26 per cent, to $30.55 a barrel, after touching $30, its lowest since February 22, 2016. The US benchmark is also heading for its biggest fall since January 1991.

"I think all forecasts are out the window," said Jonathan Barratt, chief investment officer at Probis Securities in Sydney. "It seems like a race to the bottom to secure order(s)."