OMC stocks unlikely to move into a long-term bull market

Share prices for the 3 PSU stocks plummeted through the April-October period. There is now a rebound. In the past 30 days, BPCL is up 18%, HPCL is up 15% and IOC is up 6.5%

The reversal in crude prices over the past three weeks has altered trading equations. In October, the Indian crude basket, a combination of Oman, Dubai and Brent, cost $80/ barrel according to the Ministry of Petroleum & Natural Gas. The average cost of the basket between April-October was $74.61 a barrel. The average cost through financial year 2017-18 was $56.4. 

One rule of thumb is that every $1 increase in crude prices leads to Rs 105 billion increase in India’s import bill. Every hike also hits the margins of the marketing and refining sector. The major private player in this space