OMC Stocks Jump Up To 2.5%, Brent Crude Falls Below $80 As Iran Supply Hopes Improve Sentiment

Mumbai: Shares of state-run oil marketing companies (OMCs) moved higher on Wednesday after global crude oil prices continued to decline amid easing geopolitical tensions in West Asia.

Among the major gainers, Hindustan Petroleum Corporation Ltd (HPCL) rose as much as 2.26 percent during the day to touch an intraday high of Rs 410.45 on the BSE.

Bharat Petroleum Corporation Ltd (BPCL) also witnessed strong buying interest, climbing 2.46 percent to an intraday high of Rs 319.50.

Indian Oil Corporation Ltd (IOCL) gained 1.61 percent, reaching Rs 147.45 during the trading session.

Brent Crude Slips Below $80 Per Barrel

The rally in OMC stocks followed a sharp decline in international crude oil prices.

Global benchmark Brent crude slipped below the $80 per barrel mark and hovered near a three-month low after falling significantly over the past few trading sessions.

Meanwhile, US West Texas Intermediate (WTI) crude traded near $75 per barrel, extending its losses.

Lower crude oil prices are generally seen as positive for oil marketing companies because they reduce input costs and improve profitability.

Iran Deal Hopes Ease Supply Concerns

Market sentiment improved after reports suggested that a proposed agreement between the United States and Iran could help increase Iranian crude exports.

According to reports, the interim arrangement may allow Iran to resume oil sales while creating a framework for broader negotiations on regional tensions and Tehran’s nuclear programme.

Investors believe additional Iranian oil supply could help improve global availability and reduce pressure on crude prices.

Strait Of Hormuz Reopening Adds Relief

Another positive factor for oil markets is the expectation that the Strait of Hormuz could reopen fully for commercial shipping.

The route is one of the world's most important energy corridors and carries a significant share of global crude oil shipments.

Improved movement of oil tankers through the region is expected to reduce supply disruptions and support stable energy prices.

Positive For India And Markets

Market experts noted that Brent crude has fallen around 16 percent in the last five days to nearly USD 79 per barrel.

They said lower oil prices reduce concerns about India's balance of payments deficit and help contain inflation risks.

Experts also highlighted that foreign institutional investor (FII) outflows have started slowing. A stronger rupee and softer crude prices could further improve investor sentiment.

The broader Indian stock market also traded in positive territory on Wednesday, supported by easing energy prices and improving global risk appetite.