Hindustan Petroleum share price gains more than 5%, scales 52 week high. IOCL, BPCL gain up to 4% as crude tumbles
Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation Ltd (IOCL) saw smart gains on Tuesday with decline in Crude oil prices. While Hindustan Petroleum Corporation share price with gains of more than 5% scaled 52 week highs in morning trades, Indian Oil Corporation and Bharat petroleum corporation stock price also gained up to 4.0% on the BSE. Also read- Adani Group stocks surge up to 20% after SC concludes hearing The Brent Crude prices that had risen close to $100 a barrel in September, dipped belwo $80 a barrel levels.
The Israel Hamas conflict has not impacted the crude supplies as was being anticipated. The decline in crude oil prices is improving sentiments towards the OMCs as the marketing margin outlook improves. Marketing margins are the margins that companies earn on selling fuel from the retail outlets.
The OMCs were absorbing the impact of higher crude prices as retail fuel prices had not seen any change despite rise in Crude prices. With Crude prices having corrected significantly, the OMCs will see normalization in their marketing margins . Hindustan Petroleum Corporation that derives higher contributions from retail sales petroleum product in its portfolio saw maximum rise in share prices.
For other OMC’s as Indian Oil Corporation and Bharat Petroleum Corporation while the declining crude prices improve the marketing margin outlook , the positive is also accruing from improving refining margins. Indian Oil Corportation derives higher contributions from refining of crude oil into various other petroleum products. Also Read- Arrowhead Seperation share price makes a tepid debut, stock lists at 7.3% premium at ₹250 on BSE SME The benchmark Reuters
. Read more on livemint.com
