HPCL, BPCL and IOC Shares Fall as Global Crude Prices Surge

New Delhi, October 23: Shares of major oil marketing companies (OMCs) fell today after crude oil prices surged, driving the Nifty Oil & Gas index to fall. As of 3:12 PM, the index was trading 0.66%, or 77.30 points lower, at 11,590.30.

HPCL, BPCL and IOC Shares Fall

As of 3:20 PM, Hindustan Petroleum Corporation Ltd (HPCL) shares had fallen 3.19% to ₹440.85, Bharat Petroleum Corporation Ltd (BPCL) had slipped 2.34% to ₹331.10, and Indian Oil Corporation (IOC) dropped 2.55% to ₹150.20 on the NSE. Mangalore Refinery and Petrochemicals Ltd (MRPL) was also trading lower by 2.80% at ₹146.24.

Crude Oil Rally Adds Pressure on Oil Stocks

The decline in oil marketing companies’ share prices was driven by a sharp rise in crude oil prices today. Brent crude surged over 3% to $64.80 per barrel, while US West Texas Intermediate (WTI) futures rose to $60.59. The increase in oil costs weighed on the profitability of these companies, triggering negative investor sentiment and leading to the drop in their share prices.

New Sanctions on Russian Firm

Investors are concerned following the imposition of new sanctions on Russia’s major oil firms, Rosneft and Lukoil, due to the ongoing conflict in Ukraine. As a result, Indian oil companies are reconsidering their purchases of Russian oil, raising concerns over potential disruptions in their supply chains.

Impact on India’s Oil Buying

India is expected to reduce its oil imports from Russia by roughly 40% by the end of 2025. Private players like Reliance Industries may halt direct purchases from Russian firms, while government-owned companies such as HPCL, BPCL, and IOC typically source Russian oil through intermediaries rather than directly. The full impact of these sanctions and rising oil prices on both private and public sector oil companies in India remains uncertain.

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