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PSU OMCs gain as crude oil price drops

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Capital Market
Last Updated : May 31 2019 | 2:31 PM IST

Shares of state-run oil marketing companies rose 0.97% to 1.09% at 14:15 IST on BSE after crude oil prices dropped in the international commodity market.

HPCL (up 1.09% to Rs 321.10), Indian Oil Corporation (up 1.01% to Rs 164.25) and BPCL (up 0.97% to Rs 411.45) rose.

Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

Crude oil prices dropped on Friday after US President Donald Trump said he would impose tariffs on imports from Mexico, stoking fears about global economic growth. Brent for July 2019 settlement was down 99 cents at $65.88 a barrel. The contract fell $2.58 a barrel or 3.71% to settle at $66.87 a barrel during the previous trading session.

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First Published: May 31 2019 | 2:21 PM IST

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