Shares of Oil marketing companies (OMCs) have gained in Thursday's trade following a sharp fall in global crude prices on Wednesday.
Crude oil saw fall of around 5% on news that Libya is set to restore its production and US to consider waivers on sanctions against Iran.
Libya’s National Oil Corp. (NOC) said that it would resume shipments of oil, as per media reports. ~700,000 bpd is expected to come online but also depends on how quickly the operations stabilize. Along with it Saudi is also trying to offset the shortfall of supply in such regions.
The US offered some relief on Tuesday, when Secretary of State Mike Pompeo indicated that US could enforce sanctions on Iran less strictly than originally feared, as per media reports.
This fall in crude prices reflected positively for oil marketing companies like BPCL, HPCL and IOCL, which are trading at attractive valuations.
Shares of Hindustan Petroleum Corporation Ltd
is currently trading at Rs271.45 up by Rs6.4 or 2.41% from its previous closing of Rs265.05 on the BSE. The scrip opened at Rs279.25 and has touched a high and low of Rs281.50 and Rs268.40 respectively.
Shares of Bharat Petroleum Corporation Ltd
is currently trading at Rs378.50 up by Rs10.95 or 2.98% from its previous closing of Rs367.55 on the BSE. The scrip opened at Rs383 and has touched a high and low of Rs385.80 and Rs376.25 respectively.
Shares of Indian Oil Corporation Ltd
is currently trading at Rs157.80 up by Rs2.65 or 1.71% from its previous closing of Rs155.15 on the BSE. The scrip opened at Rs159.65 and has touched a high and low of Rs164.20 and Rs156.40 respectively.
Meanwhile, shares of Jet Airways gained 2% at Rs345, SpiceJet up 3% at Rs113 and InterGlobe Aviation 2.3% at Rs1,099.60.