Shares of Bharat Petroleum Corp., Indian Oil Corp., Hindustan Petroleum Corp. and other oil marketing companies extended declines on Wednesday amid fears over crude supply disruption from the Gulf.
International crude oil price remained above $80 per barrel as fresh attacks flared in the Middle East and markets weighed a US plan to insure and escort tankers paasign through the Strait of Hormuz, with traffic in the key waterway all but halted. India remains dependent on energy imports that pass through the Strait of Hormuz.
Reliance Industries Ltd., Mangalore Refinery and Petrochemicals Ltd. and Chennai Petroleum Corp. also fell over 2%.
Sonal Varma, managing director and chief economist at Nomura Holdings, said Brent crude prices rising above $85 per barrel would pose challenges for oil marketing companies.
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