- Shares of state-run oil marketing firms declined on Monday amid rising crude prices
- HPCL shares fell 2.69% to Rs 374.70, BPCL dropped 2.15%, and IOC down 1.5%
- Brent crude futures surged over 4% above $97 per barrel after Iran-Israel missile exchanges
Shares of state-run oil marketing companies (OMCs) traded lower on Monday after global crude oil prices surged following renewed hostilities between Iran and Israel, raising concerns over fuel marketing margins.
Among the major OMCs, Hindustan Petroleum Corporation Ltd. (HPCL) declined 2.69% to Rs 374.70, while Bharat Petroleum Corporation Ltd. (BPCL) fell 2.15% to Rs 288.65. Indian Oil Corporation Ltd. (IOC) was down 1.5% at Rs 136.19.
The decline came as Brent crude futures jumped more than 4% to trade above $97 per barrel, reversing losses from the previous two sessions. The move followed fresh missile exchanges between Iran and Israel, threatening efforts by US President Donald Trump to broker a 60-day ceasefire and revive negotiations aimed at ending the conflict.
For oil marketing companies, rising crude prices are typically viewed as a negative because they increase the cost of procuring crude oil. If retail fuel prices are not adjusted in line with higher input costs, marketing margins can come under pressure, weighing on profitability.
The latest escalation in the Middle East has also renewed concerns over energy supplies from the Persian Gulf. The prolonged conflict and the continued near-closure of the Strait of Hormuz—a critical transit route for global oil exports—have kept a geopolitical risk premium embedded in crude prices.
Trump urged both sides to avoid further military action and reiterated that diplomatic talks remain ongoing despite the latest flare-up. However, traders remain cautious given the fragile nature of the negotiations and the possibility of further disruptions to oil flows from the region.
Meanwhile, OPEC+ approved another increase in July production quotas of 188,000 barrels per day, continuing its gradual supply restoration strategy. The additional output, however, has done little to ease market concerns, as geopolitical risks continue to dominate sentiment.
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