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The impact of the Middle East crisis is being seen to some extent on the Indian stock market today. The shares of oil marketing companies are under pressure on Thursday (3 October). The stocks of BPCL, HPCL and IOCL are seeing a decline of up to 5%. Actually, due to the increase in the price of Brent crude oil in the international markets, the shares of these oil marketing companies are under pressure today.
Amidst the Middle East tension, Iran has attacked Israel. After this, Israel has also talked about taking retaliatory action. Due to this, there is a rise in the price of crude oil. After this tension, the risk of disruption in the supply of crude oil has increased. Due to this, there is an increase in the price of crude oil.
Why is there pressure on OMCs shares? Oil marketing companies are under pressure due to the increase in crude oil prices, because the refining and distribution expenses of these companies increase. In this way, the pressure on the margin of oil marketing companies increases. Due to the increase in crude oil prices, there is a possibility of increase in petrol and diesel prices in the domestic market. In such a situation, if consumer demand is affected, then the sales volume may also decrease. Apart from this, if the oil marketing companies do not put the burden of expensive crude oil on the customers due to government regulation or their competition increases, then there is also a possibility of increasing pressure on their margins. Nifty Energy Index also slipped. Thus, the increase in Brent crude oil prices has a negative impact on the sentiments of oil marketing companies. This is the reason why these stocks are under pressure today. BPCL was seen trading at ₹ 352 per share at 12:15 pm with a decline of about 4.4%. Similarly, it was seen trading at ₹ 420.75 per share after slipping 5.4% and IOCL was seen trading at ₹ 172.35 per share after falling 3.75%. After the decline in these stocks, the Nifty Energy Index also saw a decline of more than 2%.
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