Shares of state-run oil marketing companies fell 2.08% to 3.58% after crude oil prices firmed up in the international commodity market.
Meanwhile, the S&P BSE Sensex was up 129.54 points or 0.34% at 38,009.94.Indian Oil Corporation (IOCL) (down 3.58%), Hindustan Petroleum Corporation (HPCL) (down 2.52%) and Bharat Petroleum Corporation (BPCL) (down 2.08%) declined.
Higher crude oil prices could increase 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.
In the commodities market, Brent crude for December 2019 settlement was up $1.33 at $60.43 a barrel. The contract rose 45 cents or 1.34% to settle at $59.10 a barrel during the previous trading session.
Crude oil prices flared up amid reports of an explosion in an Iranian tanker that has set the National Iranian Oil Company-owned vessel on fire near the Saudi port city of Jeddah. The explosion is said to have caused heavy damages to the vessel and oil is spilling into the Red Sea. The report further added that the reason for the explosion is still under investigation but reports suggested that it may be a terrorist attack.
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