Shares of India's state-run oil marketing companies (OMCs) Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd, and Hindustan Petroleum Corp Ltd rose in early trade on Wednesday, June 17, amid a drop in global crude oil prices on easing geopolitical tensions between US and Iran.
IOCL, BPCL, and HPCL shares opened in green amid a broader bullish sentiment across the Indian stock market. Shares of HPCL traded 2.17% higher at Rs 410.5, BPCL remained 2.08% up at Rs 318.6, and IOC shares were 1.63% high at Rs 147.47 apiece on the NSE.
Oil prices hit three-month lows on Wednesday as traders looked at the prospect of additional Iranian crude returning to global markets as per the proposed US-Iran agreement aimed at reopening the Strait of Hormuz. Brent crude stood near $79 a barrel, continuing a sharp retreat that has erased much of the geopolitical premium built into prices during the recent conflict. West Texas Intermediate traded below $77 a barrel after tumbling 16% over the previous four sessions, its longest losing streak of the year.
An interim agreement expected to be signed on Friday would allow Tehran to resume crude sales immediately, while also laying the groundwork for broader negotiations to formally end hostilities and impose new restrictions on Iran's nuclear programme. A draft memorandum reportedly includes commitments from Iran to ensure safe passage for merchant vessels through the Strait of Hormuz and from the US to lift restrictions that have disrupted traffic through the key shipping route.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
