Oil & gas stocks under pressure on high price concerns

MUMBAI: The violence in Iraq is turning worse with every passing day. The ISIL militants have taken control of Iraq’s biggest oil refinery in Baiji in northern Iraq, say reports.

The refinery is shut after militants attacked the refinery with machine-gun fire and mortars. According to reports, militants opened from outside two of the three main entrances to the sprawling facility.

This has led to concerns of disruption in oil supply in the short-term and global crude oil prices have resumed to move upwards.

The Brent crude rose above $113 per barrel as Iraq shut its biggest refinery. The Brent crude oil was at $113.81 per barrel, up 36 cents and crude oil was at $106.88 per barrel up 52 cents from its previous close.

India imports nearly 80 per cent of oil and rising global crude oil prices have a negative impact on Indian oil companies.

Shares of oil marketing companies plunged as rising prices may force the government to delay deregulation of diesel and LPG gas prices. BPCL fell 4.59 per cent, HPCL tanked 4.42 per cent and IOC was 3.72 per cent lower.

Among the refiners ONGC declined 1.70 per cent and Cairn India slipped 0.51 per cent.

Shares of Reliance Industries were down on profit booking as its 40th AGM failed to excite investors. The company did not announce any specific plans for its telecom unit Reliance Jio Infocomm.