OMCs’ Stocks Tumble As Fears Of Energy Crisis Loom Again

Stocks of oil marketing companies fell on the bourses on Monday amid fears of a renewed energy crisis after peace talks between the United States and Iran failed to reach a consensus.

Shares of companies like Bharat Petroleum, Hindustan Petroleum, InterGlobe Aviation (IndiGo), and Asian Paints declined by up to 3 percent on Monday.

The stock of Bharat Petroleum opened 5.5 percent lower at Rs 282.70 compared to its previous close of Rs 299.35 apiece. However, the stock managed to pare some losses to trade at around Rs 293, which was over 2 percent lower.

The stock of Indian Oil also opened almost 3 percent lower at Rs 138.85 compared to its previous close of Rs 143 apiece. During the trading hours, the stock further slipped to Rs 137.65 apiece, which was 3.7 percent lower than the previous close.

Another OMC whose stock declined on the bourses was Hindustan Petroleum. The scrip opened at Rs 345.10, which was 4.3 percent lower than its previous close of Rs 360.75 apiece.

The stock further declined to Rs 340.60 apiece, its day’s low, which was 5.5 percent lower.

The stocks of other companies that are sensitive to crude oil prices also eased. The stock of India’s largest airline operator, IndiGo, declined up to 6.3 percent, while Asian Paints stock slipped by up to 4 percent.

After the Vance-led delegation left the talks without agreement, President Donald Trump threatened to block the Strait starting today.

To heighten tensions, Iran has warned that any military ship approaching the Strait of Hormuz will be attacked by the Iranian navy.

This has led oil prices to soar past the $100 mark again and increased the threat of a more severe energy crisis, which may lead to inflation and a global slowdown across the world.

According to some experts, oil prices may surge to $150 per barrel if the conflict resumes and prolongs.