From IOC To HPCL: OMC Stocks Plummet Upto 2.63% Amid Rising Crude Oil Prices

OMC Stocks: The shares of oil marketing companies (OMCs) declined over 2% on Monday, June 29, after the US and Iran exchanged fresh strikes over the weekend, triggering a spike in crude oil rates.

BPCL turned the biggest laggard among OMC shares, falling 2.63%. Meanwhile, IOC declined as much as 2.35%, and HPCL plummeted 2.29%.

The downward movement in the stocks came after crude oil prices on the international front surged over 1% following a fresh round of retaliatory strikes between the US and Iran highlighted the fragile nature of their interim peace agreement and disrupted energy shipments through the Strait of Hormuz once again.

As of 10:36 AM, WTI crude oil rate surged 1.17% to $70.04 per barrel, while the Brent crude price stood 0.65% higher at $72.46 per barrel. 

On the other hand, oil explorer stocks surged over 1% with ONGC share price hitting Rs 236.90 apiece, 1.6% higher, and Oil India gaining 1.16% to Rs 411.50.

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The rise in global crude oil prices comes after a 10.6% decline in Brent prices last week after crude shipments through the Strait of Hormuz increased to their highest levels since the US-Israeli conflict with Iran began in late February.

However, shipping activity declined again after attacks on vessels in the Strait of Hormuz Thursday onwards. These incidents led to retaliatory strikes by both the US and Iran, dampening expectations of a peace deal. 

On the other hand, Saudi oil major Aramco restarted its crude loading operations at its Ras Tanura terminal, situated west of the Strait of Hormuz, on Friday after a nearly four-month suspension. The move comes as oil producers increase output and exports ahead of the interim agreement.