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PSU OMCs advance on decline in crude oil prices

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Capital Market
Last Updated : Feb 20 2015 | 12:02 AM IST

Shares of three public sector oil marketing companies rose 1.08% to 2.41% at 15:12 IST on BSE on fall in international crude oil prices.

BPCL (up 1.82%), HPCL (up 1.08%), and Indian Oil Corporation (up 2.41%), edged higher.

Meanwhile, the S&P BSE Sensex was up 150.05 points or 0.51% at 29,470.31.

Brent crude futures extended losses registered during the previous trading session after weekly data showed US crude inventories have built up much faster than expected. Brent for April settlement was off $1.60 a barrel at $58.93 a barrel. The contract had lost $2 a barrel or 3.19% to settle at $60.53 a barrel during the previous trading session. The latest data showed US crude supplies for the week ended 13 February 2015 saw a whopping 14.3 million-barrel jump from a week earlier, according to the American Petroleum Institute.

Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.

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First Published: Feb 19 2015 | 3:06 PM IST

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