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.

EDITORIAL OF THE DAY

  • E-wallet companies must make their revenue models sustainable

    At a time when e-wallets have come to be accepted as the new normal, HDFC chairman Aditya Puri’s contention that digital payment companies have no f

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Disequilibrium: The Phantom of a Bloody Opera

As long as the walk between subjectivity and objectivity is ...

Sachin Shridhar

Strip numbers, see truth

Indian Parliament has over has over 34 per cent of ...

Kuruvilla Pandikattu

The eternal question of science & religion

Well-known physicist Stephen Barr, author of Modern Physics and ...