​​​
  1. Falling crude oil price drags Indian oil companies’ shares down, but airlines’ stocks fly

Falling crude oil price drags Indian oil companies’ shares down, but airlines’ stocks fly

Shares of India’s oil exploration companies as well as those of refining and marketing companies fell sharply on Wednesday following a slump in the global crude oil prices, but aviation companies stocks rose at the same time on hopes of cheaper jet fuel.

By: | Published: June 21, 2017 12:35 PM
Shares of Oil and Natural Gas Corp fell as much as 2.2% to Rs 165 on BSE today. Its smaller peer Oil India Ltd also fell by about 1.9%. (Image: Reuters)

Shares of India’s oil exploration companies as well as those of refining and marketing companies fell sharply on Wednesday following a slump in the global crude oil prices, but aviation companies stocks rose at the same time on hopes of cheaper jet fuel.

The state-run Oil and Natural Gas Corp — India’s largest exploration and production company — fell as much as 2.2% to Rs 165 on BSE today. Its smaller peer Oil India Ltd — another state-run oil producer — also fell by about 1.9% and made the day’s low of Rs 289.85 so far.

On the other hand, stocks of oil refiners fell too, despite the prospects of fall in costs of their further purchases of crude oil, as concerns prevailed over losses on sale of products from their existing inventory built up at higher prices earlier.

The state-run behemoth Indian Oil Corp fell as much as 0.8% to the day’s low of Rs 408.1. Bharat Petroleum Corp shed 1.77%, while Hindustan Petroleum Corp too fell 1.65%. Oil refining companies make products such as petrol and diesel from crude oil brought from both India’s exploration companies and international markets. Usually, falling crude oil prices lower their costs, but often inventories losses weigh on their finances.

Global crude oil prices fell on Wednesday to around multi-month lows as investors were not convinced that even a strong compliance by oil producing nations to cut output will support prices in the near term in the face of rising shale production in the US. Global benchmark Brent was down 11 cents, or 0.2%, at $45.91 barrel, extending its near 2% fall in the previous session to its lowest settlement since November. The price of the Indian basket of crude oil fell to $45.84 per barrel on June 19 from $45.94 per barrel on June 16 — the previous trading day.

Compliance with an agreement by the Organization of the Petroleum Exporting Countries and other producers to cut output by 1.8 million barrels per day (bpd) for six months from January reached its highest in May since curbs were agreed last year, Reuters reported.

Indian airlines’ stocks rose as jet fuel is their biggest cost. Spicejet Ltd rose 3.6%; Jet Airways was up 3.02%, while InterGlobe Aviation (IndiGo) climbed 2.1%.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

  1. harsha harsha
    Mar 28, 2018 at 10:23 am
    Reasons You Are Failing In Your Online Business Now, this is going to sound crazy, but the people over at InstaBuilder have just released their new s page for their "drag drop" s funnel creator (the one that over 6000 marketers are using right now)... And I have to tell you... If you need a "checklist" for your s funnel (to make sure you are getting the highest conversions possible) you NEED to read that letter. Here is the link >>> : instabuilder ?v1afs8g4S51B6A8J6A I'm not even joking right now. Get out a pen and piece of paper, go to the s page, and go through all 32 of those points. If your s funnel isn't taking advantage of EVERY SINGLE ONE of those conversion boosting tactics... then your funnel isn't performing like it should.
    Reply
    1. S
      Sadasivan
      Jun 21, 2017 at 1:20 pm
      Chennai Petro and MRPL,both cum-Dividend,are attractive now.
      Reply

      Go to Top