Shares of Oil Marketing Companies (OMCs) were trading in the green on Thursday as Brent oil, the benchmark for international crude oil prices, slumped below its key level of $60/bbl.
Accordingly, shares of Hindustan Petroleum Corporation (HPCL)
and Bharat Petroleum Corporation (BPCL)
were trading 2% higher. Notably, shares of Indian Oil Corporation (IOCL)
were trading on a flat note.
Crude oil prices in the global markets dropped after the US Energy Information Administration (EIA) on Wednesday reported that US crude oil inventories climbed unexpectedly for the second consecutive session at 2.2mn barrels last week after analysts forecast a decrease of 481,000 barrels. At 485.5 million barrels, US crude oil stocks were at their highest since July 2017 and about 8% above the five year average for this time of year, EIA said.
Meanwhile, shares of IOCL were trading flat after media reports suggested that the Norwegian Government in its parliamentary meeting has decided to sell shares in all global energy stocks. As per reports, the government’s Pension Fund Global will be selling stake in Indian Oil Corporation Ltd, ONGC Ltd, Oil India Ltd, and Reliance Industries. Notably, the fund owns less than 1% stake in each of the four companies, reports said.