Oil marketing companies tumble up to 8 pc as crude oil prices rise

Shares of oil marketing companies (OMCs) fell up to 8 per cent today as crude oil prices increased in global markets.

Crude oil was trading higher by 0.83 per cent at Rs 4,855 per barrel in futures market today.

Reacting to this, the scrip of Hindustan Petroleum Corporation Ltd settled for the day at Rs 277.05, down 7.45 per cent per cent over its previous closing price.

At the Multi Commodity Exchange, crude oil for delivery in July rose by Rs 40, or 0.83 per cent, to Rs 4,855 per barrel in a business turnover of 2,121 lots.

Analysts said speculators built fresh positions after oil prices rose in Asia as the US pressured allies to stop buying Iranian crude. This mainly led to rise in crude oil prices in futures trade here.

"Downstream oil and gas companies have witnessed strong downward corrections year to date. Gross refining margins peaked in Q3FY18, and have remained under pressure in the face of high crude prices," Sanctum Wealth Management said in a research note.

It further noted that OPEC's decision to raise production alongside rising US production will aid in stabilising prices around current levels with slight downside bias.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)