BPCL To IOCL: OMC Stocks Surge Upto 2.5% As Oil Prices Cool Off Ahead Of US-Iran Ceasefire Talks

The shares of public sector oil marketing companies (OMCs) surged upto 2.5% in early trade on Friday, April 10, after rude oil prices fell ahead of the US-Iran ceasefire talks scheduled for this weekend.

This has also raised hopes over the opening of Strait of Hormuz, an easing tensions linked to the West Asia crisis. As a direct result of this, oil prices declined below their recent highs hit at the height of the crisis.

OMCs tend to bear the brunt of the crude spike, as retail price adjustments often lag behind the rapid surge in international prices.

During this week, both Brent and WTI have shredded 11% so far, making it the biggest weekly decline since June 2025, according to a Reuters report.

As of 11:30 AM, the Brent crude prices stood 1.00% higher at $ 96.88 per barrel, while WTI crude prices was  0.79% higher at $98.64.

Meanwhile, the share price of Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Ltd (IOCL),and Hindustan Petroleum Corporation (HPCL) rose 2%-2.5% today.

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In March, oil PSU stocks plummeted between 25% and 27% as concerns over elevated crude prices, along with minimal expected RSP/excise duty intervention, worried investors about the near- to medium-term impact on margins.

In the current environment of negative marketing margins, all three OMCs face significant earnings risk.

HPCL is currently the most vulnerable, with a combined refining cover of <50%, leaving it far more exposed to marketing under-recoveries compared to BPCL (~70%) and IOCL (~75%), Ambit Capital had said in a report dated March 23, 2026.

US-Iran Ceasefire Talks

In Pakistan, preparations are ongoing for the first round of US-Iran talks on Saturday aimed at settling the Middle East conflict that began with US and Israeli attacks on Iran on February 28.

Iran released on Wednesday a 10-point proposal for a settlement to the war that included maintaining control of the Strait of Hormuz, acceptance of Iran's right to nuclear enrichment, lifting of sanctions and ending the war, including against Hezbollah in Lebanon, as per a Reuters report.