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News Topical, Digital Desk : 52-Week Low Stock: The impact of the continued rise in international crude oil prices is clearly visible on the shares of India's state-owned oil companies (OMCs). On Thursday, March 19, shares of Hindustan Petroleum Corporation Ltd. (HPCL) fell nearly 6% to reach their 52-week low. Along with this, shares of other state-owned refiners Bharat Petroleum Corporation Ltd. (BPCL) and Indian Oil Corporation Ltd. (IOC) also fell by 3% to 4%.
Oil prices rise due to geopolitical tensions The main reason for the rise in oil prices globally is the increasing tension in West Asia. Recently, due to attacks on energy infrastructure between Israel and Iran, the gas production units of Qatar and Iran have been affected. As a result, the prices of Brent crude have risen to around $113 per barrel and WTI crude has reached around $100 per barrel. Brokerage firms have reduced their targets Brokerage firm Kotak Institutional Equities has raised its oil price forecast to $85 per barrel for the financial year 2027 and $75 for FY28. The firm says that due to control on retail prices, OMC companies will have to bear the burden of rising crude oil, freight and insurance costs. This may increase pressure on the earnings of these companies in the future. Kotak has reduced its target for IOC from ₹125 to ₹100, for BPCL from ₹300 to ₹240, and for HPCL from ₹335 to ₹235, maintaining a "sell" rating on all three. HSBC also recently downgraded these companies to "hold."
Earnings could be significantly impacted. According to brokerage JPMorgan , every $1 per barrel change in crude oil prices in fiscal year 2027 could impact these companies' EBITDA by approximately 7%.
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