Shares of India's state-run oil marketing companies (OMCs) Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd, and Hindustan Petroleum Corp Ltd, gained nearly 1% to trade in green on Tuesday, June 9, after global crude oil prices steadied near the $94 per barrel-mark. This comes after Israel and Iran agreed to halt attacks against each other, reducing fears of a broader escalation that could have further disrupted global energy supplies. Brent crude traded near $94 per barrel after ending the previous session marginally higher, while US benchmark West Texas Intermediate hovered above $91 a barrel.
Shares of IOCL, BPCL, and HPCL opened higher each and trade in green amid a largely volatile sentiment across the domestic frontline indices. On the NSE, shares of IOCL last traded 0.74% higher at Rs 136.70, BPCL traded 0.75% higher at Rs 287.30, and HPCL shares were last up 0.90% lower at Rs 376.10 apiece on the index. Indian benchmark indices gained in the opening trade, halting their two-day losing streak. Nifty 50 rose 0.6% to 23,259.45, while the Sensex rose 0.7% 511 points to 74,035.
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Crude Oil Price Trend
However, analysts caution that even a formal peace agreement would not immediately restore energy flows. Mines in the Strait of Hormuz would need to be cleared, damaged energy infrastructure repaired and oil fields brought back online, a process that could take months. Brent has risen around 31% since the eve of the conflict just over 100 days ago, while WTI has risen around 37%.
Brent in April touched a peak above $126 a barrel. Prices gained more than 5% earlier on Monday after renewed Israeli strikes on Iran and attacks on Lebanon had reduced hopes of an imminent end to the wider war. Israel hit a petrochemical plant in southwestern Iran that it said was used to produce ballistic missiles, and Iran's Islamic Revolutionary Guard Corps said the country retaliated with a strike aimed at a similar Israeli facility in the city of Haifa.
The exchange followed Israeli strikes on strongholds of Iran-backed Hezbollah in Beirut over the weekend. Tehran has repeatedly said any deal with Washington to end the conflict must include a halt to Israel's campaign in Lebanon. US President Donald Trump on Monday demanded that Israel and Iran "immediately stop 'shooting.'"
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