OMCs gain as oil prices hit 3-year lows

MUMBAI: Oil marketing companies such as HPCL and IOC posted significant gains on lower subsidy burden as oil prices declined further.

Crude oil fell to the lowest in more than three years in New York on signs that the economy in the US, the world's largest energy consumer, is in a more severe economic slowdown than expected.

Crude oil for January delivery dropped as much as $1.70, or 3.5 per cent, to 47.58 a barrel on the Nee York Mercantile Exchange, the lowest since May 20, 2005.

Meanwhile, oil prices have tumbled 67 per cent since reaching a record $147.27 on July 11 as the US, Europe and Japan face their first simultaneous recession since World
War II.

At 11:45am, HPCL shares were up 1.51 per cent at Rs 235.95, BPCL shares gained 1.5 per cent to Rs 369.80 while IOC was up 1.59 per cent at Rs 401.25.