Oil companies' stocks crack up to 8.2pc as crude oil surges

Tags: News
Shares of oil marketing companies - HPCL, BPCL and IOC - today tanked as much as 8.2 per cent following civil unrest in major producer Iraq that pushed up oil prices.

HPCL shares plunged 8.17 per cent to Rs 392.25, while BPCL lost 5.14 per cent to Rs 568.25 on the BSE. IOC tumbled 5.07 per cent to Rs 333.20.

The BSE oil and gas index ended at 11,361.96, down 1.90 per cent.

Higher crude oil prices could increase under-recoveries of oil marketing companies that sell at subsidised rates.

Besides, a surging oil imports bill could pose problems for the economy which Prime Minister Narendra Modi is trying to reboot, said brokers.

"Markets witnessed heavy selling pressure following concerns over higher oil prices. Rising tensions in Iraq is a major reason for this sudden rise in crude oil," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.

Surging crude oil prices in global markets hit investor sentiment on concerns that unrest in Iraq could disrupt the country's oil supplies.

Brent crude oil hit a 9-month high near USD 115 a barrel today after militants closed in on Iraq's capital Baghdad.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Lawmakers must not dilute penalties for insurers on mis-selling

    The much delayed insurance laws (amendment) bill is back in the news and the positive statements of finance minister Arun Jaitley suggest that the gov

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

New model for effective education

After interacting with students and teaching community on a ...

Zehra Naqvi

Being unrealistic can be good for you

Depression is a term that most people use very casually ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture