Last Updated:June 12, 2025, 11:44 IST
Shares of oil marketing companies (OMCs) came under selling pressure on June 12 as global crude prices surged over 4%
Crude Oil
Crude Oil Price Surge: Shares of oil marketing companies (OMCs) came under selling pressure on June 12 as global crude prices surged over 4%, hitting their highest levels in more than two months, amid escalating geopolitical tensions in the Middle East.
At 10:20 AM, shares of Hindustan Petroleum Corporation Ltd (HPCL) were trading 4.5% lower at Rs 396. Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation Ltd (IOC) saw declines of 3.65% and 2%, respectively. Meanwhile, Mangalore Refinery and Petrochemicals Ltd (MRPL) was down 1.6% at Rs 143.58.
In contrast, oil exploration and production companies gained. Oil and Natural Gas Corporation Ltd (ONGC) rose 2%, while Oil India surged 4% by 10:25 AM.
The market reaction follows heightened geopolitical concerns after Iran warned it would target US military bases in the region if nuclear talks collapse. Reports also indicated that the US is preparing to evacuate its embassy in Iraq due to rising security threats, Reuters reported.
Crude prices reacted sharply. Brent crude futures jumped $2.90 (4.34%) to $69.77 per barrel, while U.S. West Texas Intermediate (WTI) rose $3.17 (4.88%) to $68.15—both reaching their highest levels since early April.
Traders reportedly scrambled to buy crude futures amid fears of supply disruption, especially from Iraq, OPEC’s second-largest producer.
Analysts told Reuters that a prolonged rise in Brent crude could be negative for India, which imports the bulk of its oil needs, as it could strain fiscal and trade balances.
Interestingly, the sell-off in OMC stocks comes just a day after they posted gains following a U.S. government report predicting a fall in oil prices over the medium term. The U.S. Energy Information Administration (EIA) expects Brent to average $59 per barrel in 2026, down from $64 in May 2025 and $61 by end-2025, due to rising global inventories.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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