Shares of three public sector oil companies rose by 1.96% to 2.97% at 11:03 IST on BSE as crude oil prices edged lower yesterday, 15 July 2015.
Among public sector oil companies (PSU OMCs), Indian Oil Corporation (up 2.97%), HPCL (up 2.37%) and BPCL (up 1.96%) edged higher.
The S&P BSE Sensex was up 162.06 points, or 0.57% at 28,360.35 .
In global commodities markets, Brent crude oil prices edged higher today, 16 July 2016, after weekly data showed that US crude inventories dropped last week and refinery demand was high. Brent for August settlement was currently up 40 cents at $57.45 a barrel. The contract had dropped $1.46 a barrel or 2.49% to settle at $57.05 a barrel during the previous trading session. The August Brent contract is set to expire today, 16 July 2015. Brent for September settlement was currently up 33 cents at $57.45 a barrel.
Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already freed pricing of petrol and diesel.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 63.5025, compared with its close of 63.4225 during the previous trading session.
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Meanwhile, PSU OMCs yesterday, 15 July 2015, announced a reduction in petrol and diesel prices. Indian Oil Corporation said that the company has decided to reduce the basic retail selling price of petrol by Rs 2 per litre (excluding state levies) with effect from the midnight of 15 July/16 July 2015. IOCL also announced reduction in basic retail selling price of diesel by Rs 2 per litre (excluding state levies).
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