Ukraine crisis over? Oil marketing companies gain as rupee appreciates, crude slips

MUMBAI: Shares of oil marketing companies pulled back in the positive terrain after crude oil prices eased and the rupee appreciated against the US dollar following reports that Russia has ordered its troops to return to base from Ukraine.

“Russian President Vladimir Putin has ordered troops that took part in military exercises this week to return to base, Russian news agencies quoted the Kremlin spokesman as saying on Tuesday,” reported Reuters.

The U.S. crude price fell more than $1 to $103.91 per barrel after Russia's orders. The tensions between Russian and Ukraine had led to sharp rise in crude oil prices which rose to highest settlement price in 5-1/2 months on Monday.

Early morning, the Brent crude held above $111, at its highest levels since the end of last year, on concerns over Russia's military intervention. It was now trading at 110.50 per barrel.

The Indian rupee has also recovered after hitting 2-week low yesterday. The currency had fallen nearly 0.5 per cent in trade yesterday. The partially convertible rupee was at 61.89, up 14 paise, against its previous close. It had corrected to 62.12 per dollar intraday.

The oil marketing companies are likely to offset some of the under-recoveries after hiking diesel prices by 50 paise per litre and petrol prices by 60 paise a litre over the weekend.

This is the second time that petrol prices have been increased in the current year. Petrol price will cost Rs. 73.16 a litre and diesel will be sold at Rs. 55.48 per litre in Delhi.

OMCs have hiked diesel retail prices regularly since January 2013 and have increased diesel retail prices by approximately by Rs 8 per liter since January 2013.

At 12:30 p.m.; IOC was up 1.30 per cent at Rs 253.90, HPCL gained 0.39 per cent and BPCL was 1.31 per cent higher.