Homemarket News

    ONGC, OIL, Indian Oil shares fall as crude oil slips below $100 a barrel

    ONGC, OIL, Indian Oil shares fall as crude oil slips below $100 a barrel

    ONGC, OIL, Indian Oil shares fall as crude oil slips below $100 a barrel
    Read Time
    3 Min(s) Read
    Profile image

    By CNBCTV18.com  IST (Published)


    Shares of most oil-producing companies including ONGC, Oil India Limited and Indian Oil traded lower as crude oil prices fell below $100 a barrel. Meanwhile, stocks of some oil and gas marketing companies (OMCs) like BPCL and Castrol India were in the green.

    Shares of most oil-producing companies including Oil and Natural Gas Corporation (ONGC) and Indian Oil declined on Wednesday as crude oil prices fell below $100 a barrel, which is likely to impact such firms’ profitability.
    Meanwhile, stocks of some oil and gas marketing companies (OMCs) were in the green as their sourcing cost shall reduce.
    ONGC shares were in focus, having fallen over 2 percent in early trade, as lower crude oil prices shall lead to a lower ‘average realisation from every barrel’ of oil sold. In the past month, the stock has erased more than 22 percent of investors’ wealth as against the benchmark Sensex, which has risen more than 2 percent during the period.
    Shares of Oil India Limited (OIL) declined almost 3 percent following the dip in crude oil prices.
    On the other hand, shares of OMCs were on the rise as the plunge in oil prices provided some respite after unrelenting inflation in June. Bharat Petroleum Corporation Limited (BPCL) stock jumped more than 2 percent, and Gujarat Gas and Hindustan Petroleum Corporation Limited (HPCL) were up over 3 percent in intraday trade.
    Here’s how oil and gas stocks are faring after the brent’s drop:
    Oil India Limited-0.11%
    Adani Total Gas Ltd-3.12%
    Petronet LNG-0.42%
    Castrol India3.56%
    Indraprastha Gas-0.11%
    Indian Oil Corporation-0.28%
    Gujarat Gas2.58%
    Gujarat State Petronet0.35%
    Aegis Logistics-0.31%
    Mahanagar Gas Limited1.22%
    Hindustan Petroleum0.13%
    Source: BSE 
    Global benchmark Brent crude tumbled $7 on Tuesday to settle below $100 a barrel for the first time in three months on a strengthening dollar, fresh COVID-19 curbs in top crude importer China, and rising fears of a global economic slowdown. At 11:18 am (IST), the index was trading 0.07 percent lower at $99.42 a barrel.
    The American Petroleum Institute (API) has reported a large build this week for crude oil of 4.762 million barrels, while analysts predicted a draw of 1.933 million barrels.
    According to Rahul Kalantri, VP Commodities, Mehta Equities Ltd, crude oil prices also plunged as US President Joe Biden is set to travel to Saudi Arabia later this week to try and negotiate for an increase in oil production from the main player in the cartel, and one of the very few that still have excess capacity. The prices also fell after OPEC’s latest report forecasts that oil demand will slow in 2023 by 2.7 million barrels per day, he said.
    “We expect crude oil prices to remain volatile in today’s session. Crude oil has support at $93.40–91.70 and resistance at $97.80–99.50. In rupee terms crude oil has support at Rs7,550-7,420 while resistance is at Rs7,790–7,950,” he said.
    India, the world's third-largest importer of oil benefits from a fall in crude prices as it brings down imported inflation in the country.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All