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Oil E&P stocks decline on slump in crude oil price

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Capital Market
Last Updated : Jan 19 2016 | 12:01 AM IST

Three oil exploration and production stocks lost 2.44% to 4.35% at 10:23 IST on BSE on decline in crude oil prices after international sanctions on Iran were lifted, adding to the global supply glut.

Cairn India (down 4.35% at Rs 114.35), Oil India (down 2.93% at Rs 345) and ONGC (down 2.44% at Rs 214.20) edged lower. Reliance Industries was unchanged at Rs 1,073.20.

Meanwhile, the S&P BSE Sensex was down 81.49 points or 0.33% at 24,373.55.

Lower crude oil prices would result in lower realization from crude sales for oil exploration firms. Brent crude oil futures slumped after international sanctions on Iran were lifted, adding to the global supply glut. Brent for March settlement currently down 22 cents a barrel at $28.72 a barrel. The contract had slumped $1.94 a barrel or 6.28% to settle at $28.94 a barrel during the previous trading session.

Among the state-run oil marketing companies (PSU OMCs), BPCL (down 0.42% at Rs 929.60) and HPCL (down 0.57% at Rs 880.20) declined. Indian Oil Corporation (IOCL) (up 0.35% at Rs 427.80) edged higher. IOCL announced a reduction in petrol price by 32 paise per litre and diesel by 85 paise a litre with effect from Saturday, 16 January 2016. Petrol in Delhi now costs Rs 59.03 per litre while diesel costs Rs 44.18 a litre.

Meanwhile, the government has increased the basic excise duty on unbranded petrol to Rs 8.48 per litre from Rs 7.73 per litre and the same on unbranded diesel to Rs 9.83 per litre from Rs 7.83 a litre with effect from 16 January 2016.

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First Published: Jan 18 2016 | 10:25 AM IST

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