HPCL, BPCL, IOC shares jump up to 5% as crude prices slip to $75 per barrel

Shares of oil marketing companies (OMCs) Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL), and Indian Oil Corporation (IOC) on Tuesday jumped up to 5% on the BSE as Brent crude prices fell to $75 per barrel, falling 3% today.

Shares of HPCL gained 5% to their day’s high of Rs 426.30 while BPCL shares went up 3.3% to Rs 351.45. Meanwhile, the shares of IOC jumped 2.5% to Rs 169.60.

At the time of market opening, Brent crude futures were down $2.26, or 2.9%, at $75.20 per barrel, while U.S. West Texas Intermediate crude futures fell $2.19, or 3%, to $71.64 per barrel as of 9:43 AM IST. Both benchmarks had settled about 2% lower on Monday.


Oil prices slid $2 in early Asian trade on Tuesday as OPEC lowered its outlook for global oil demand growth in 2024 and 2025 and a media report that Israel is willing to strike the Iranian military and not nuclear or oil targets.

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Crude oil prices significantly impact Oil Marketing Companies (OMCs) by influencing their cost structure and profitability. When crude prices rise, the cost of raw materials increases, which can compress refining margins if fuel prices aren’t adjusted accordingly.

Government-regulated fuel prices can limit the ability of the OMCs to pass on higher costs to consumers, further affecting margins. Additionally, higher oil prices may reduce demand, impacting sales volumes and overall financial performance.

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