Shares of four oil exploration and production (E&P) companies dropped 0.01% to 2.73% at 14:30 IST on BSE after decline in global crude oil prices.
Meanwhile, the S&P BSE Sensex was down 416.38 points or 1.64% at 24,983.27.
ONGC (down 0.89%), Reliance Industries (RIL) (down 0.71%), Oil India (down 0.01%) and Cairn India (down 2.73%) edged lower. Lower crude oil prices would result in lower realization from crude sales for oil exploration firms.
Crude oil prices edged lower in the global commodities markets on mounting skepticism that key global crude producers would reach an agreement to freeze production at a meeting later this month. Brent for June settlement was currently down 7 cents at $37.62 a barrel. The contract had declined 98 cents or 2.53% to settle at $37.69 a barrel during the previous trading session. Saudi Arabia on Friday, 1 April 2016, said that it would freeze oil production only if Iran follows suit. Iran has ruled out freezing output until its production recovers to pre-sanction levels.
The world's major crude oil producers led by Russia and Saudi Arabia have convened a meeting on 17 April 2016 in Doha, Qatar to discuss measures to stabilise prices, including a proposal to freeze output.
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