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Shares of Aban Offshore have dipped 6% to Rs 419, extending its month-long decline on BSE, due to falling crude oil prices.The stock opened at Rs 441 and touched a low of Rs 419 on BSE so far.
In past one month, shares of oil exploration and production (E&P) firm declined by 30% from Rs 600 on November 14, as compared to less than 3% fall in the benchmark S&P BSE Sensex. It has been declined more than 50% from its 52- week high of Rs 940 touched on July 8, during intra-day trade.
Oil fell to fresh lows not seen since July 2009 on Friday with Brent crude slipping towards $62 a barrel on concerns over a global supply glut and weak demand. Brent was down more than nine per cent last week, taking its fall since a June peak above $115 to 45%, the Reuters report suggests.
According to market experts, low commodity prices and global economic weakness which could impact capex budgets of E&P companies and oilfield services demand.
Falling crude price means offshore companies would find it uneconomical to further expand and exploration and even produce at current levels.
In past one month, shares of oil exploration and production (E&P) firm declined by 30% from Rs 600 on November 14, as compared to less than 3% fall in the benchmark S&P BSE Sensex. It has been declined more than 50% from its 52- week high of Rs 940 touched on July 8, during intra-day trade.
Oil fell to fresh lows not seen since July 2009 on Friday with Brent crude slipping towards $62 a barrel on concerns over a global supply glut and weak demand. Brent was down more than nine per cent last week, taking its fall since a June peak above $115 to 45%, the Reuters report suggests.
According to market experts, low commodity prices and global economic weakness which could impact capex budgets of E&P companies and oilfield services demand.
Falling crude price means offshore companies would find it uneconomical to further expand and exploration and even produce at current levels.
