Crude oil prices are increasing amid the ongoing tension between America and Iran. Crude oil prices continued to rise for the second consecutive day. Prices have increased, but on February 12, there was selling pressure in the shares of Oil Marketing Companies (OMCs). There has been a lot of pressure on the shares of these oil companies.
Shares of Bharat Petroleum Corporation Limited (BPCL) fell by 2.20% to Rs 379.05 on BSE during trading on Thursday. Meanwhile, shares of Indian Oil Corporation (IOC) fell 1.54% to Rs 178.50. Another PSU oil stock, Hindustan Petroleum (HPCL), fell 1.52% to Rs 454.80. The question coming in your mind might be why the stocks are falling after the rise in prices. In fact, any rise in crude oil prices increases input costs for OMCs, which impacts their margins.
This new rise in crude oil prices has come due to the fear of supply disruption amid US and Iran tensions. Brent crude futures rose 0.39% to $69.67 a barrel and WTI crude oil rose 0.45% to $64.92. Both benchmarks were seen in the last trading session. Their prices had increased by about 1 percent.
According to a Reuters report, US President Donald Trump said he has not been able to reach a "firm" agreement on how to proceed with Iran, but he stressed that talks with Tehran will continue. Meanwhile, on Tuesday, Trump said that if no deal is made with Iran, he is considering sending a second aircraft carrier to the Middle East. Despite today's decline, all three OMC stocks remain in the green on a month-on-month basis, rising 4%-9%, as the government refrained from increasing excise duty on retail fuel in Union Budget 2026.
