Business

As crude oil prices fall, why next few weeks will set the course for IOC, ONGC stocks

In the last few days, Brent crude prices have fallen sharply. Analysts expect the prices to sink towards USD65 per barrel from nearly USD70 now. How will this impact OMCs and what are the implications for exploration and refining companies?

Benign crude oil prices and robust refining margins in the past couple of years have fuelled the stock prices of India’s oil marketing companies (OMCs) to unprecedented heights. Take for example the shares of Oil India Corporation (IOC). From the Covid-19 lows of INR47 per share in March 2020, the stock has now risen to nearly INR200 – a 300% jump.

Similarly, the shares of Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation.