- Shares of Indian Oil, BPCL, and HPCL fell nearly 2% in early trade on May 18
- Brent crude futures rose $2.03 to $111.29 a barrel, highest since May 5
- Geopolitical tensions between the US and Iran drove the crude oil price surge
Shares of India's state-run oil marketing companies (OMCs) Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd, and Hindustan Petroleum Corp Ltd, tumbled in early trade on Monday, May 18, amid a surge in global crude oil prices on the ongoing geopolitical tensions between US and Iran. Global crude oil prices extended gains as week-long efforts by leading mediators to end the Iran war appeared to have stalled, after a nuclear power plant in the United Arab Emirates came under attack.
Shares of IOCL, BPCL, and HPCL opened nearly 2% lower each and extended losses to trade in red amid a broader bearish sentiment across the domestic frontline indices. On the NSE, shares of HPCL las traded 2.21% lower at Rs 358.30, IOC traded 2.42% lower at Rs 131.22, and BPCL shares were last down 2.57% lower at Rs 257.15 apiece on the NSE. After the opening bell, benchmark Nifty 50 fell as much as 1.15% to 23,371.80, while the Sensex dropped 1.22%, or about 892 points, to 74,345. Brent crude futures climbed $2.03, or 1.86%, ​to $111.29 a barrel, after touching $112 earlier, the highest since May 5.
U.S. West Texas Intermediate crude stood at $107.75 a barrel, up $2.33, or 2.21%, after a rise to $108.70, its highest since April 30. The front-month June contract expires on Tuesday. Both contracts gained more than 7% last week as hopes dimmed for a peace deal to end ship attacks and seizures around the key waterway of the Strait of Hormuz.
Last week's talks between Trump and Chinese President Xi Jinping ended without an indication from the world's top oil importer that it would help resolve the conflict unleashed by the U.S.-Israeli attacks on Iran. Drone attacks on the UAE and Saudi Arabia and rhetoric from the United States and Iran raised concerns of an escalation in the conflict.
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