Stocks Of Airlines, OMCs Gain As Brent Falls Below $72 On Supply Optimism

Shares of crude-sensitive companies traded higher in early market action on Thursday as international oil prices continued their downward trajectory.

Brent crude slipped to a fresh low of around $72 per barrel, extending its losing streak and wiping out gains accumulated during the recent peak of geopolitical tensions between the United States and Iran.

Among the biggest beneficiaries was InterGlobe Aviation, the parent company of IndiGo, whose stock surged 4.49% to ₹5,443.

The airline sector gained on expectations of lower aviation turbine fuel (ATF) costs, which typically improve profitability for carriers.

Oil marketing companies also saw gains. Bharat Petroleum Corporation (BPCL) rose 1% to ₹318.75, while Hindustan Petroleum Corporation (HPCL) advanced 0.9% to ₹416.85.

Indian Oil Corporation (IOC) edged up marginally by 0.1% to ₹146.47. Overall sentiment in the sector improved as declining crude prices are expected to ease input cost pressures and support refining margins.

In contrast, Asian Paints, which is sensitive to crude oil price movements due to its dependence on petroleum-based raw materials, traded slightly lower, falling 0.2% to ₹2,661.40.

The gains in crude-linked stocks came as Brent crude extended its decline for a fourth consecutive session.

According to Bloomberg data, Brent fell below $72.48 per barrel, slipping under its pre-conflict levels, while West Texas Intermediate (WTI) hovered near $69 per barrel.

The decline in oil prices is being attributed to easing geopolitical tensions following signs of progress in diplomatic talks between the United States and Iran.

Improved expectations of stability in the Middle East have reduced fears of supply disruptions, particularly around critical shipping routes.

Increased crude flows through the Strait of Hormuz, along with higher supply from producers in the Middle East and Africa, have contributed to a more comfortably supplied global market. This has placed downward pressure on prices.

Additionally, market structure indicators show weakening sentiment, with Brent’s prompt spread shifting into contango. This suggests that traders expect sufficient near-term supply, further reinforcing the bearish outlook for crude oil.

Overall, the decline in crude prices has boosted sentiment in fuel-sensitive sectors, particularly airlines and oil marketing companies, while signalling softer cost pressures for the broader economy.