Shares of state-run oil marketing companies including Hindustan Petroleum Corporation Limited, Indian Oil Corporation and Bharat Petroleum Corporation traded lower on Monday, April 13 after Donald Trump announced blockade of the Strait of Hormuz by the US military as ceasefire talks with Iran fail, raising global energy supply concerns.
HPCL dropped the most, with its share price falling 5.49% intraday to Rs 340.8 apiece on NSE, followed by BPCL shares, which were down 5.04% intraday, trading at Rs 284.25 and shares of IOC dropped 3.78% to Rs 137.56 apiece. The benchmark NSE Nifty 50 was down 1.26%.
Check intraday share price trend of major OMCs
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The fall in OMC stocks comes after benchmark Brent crude rose more than 8% to move past the $103 per barrel mark, while US crude and European natural gas prices also marked significant gains after Trump announced a blockade targeting vessels linked to Iran through the Strait of Hormuz as the ceasefire talks with Iran over the weekend failed.
Trump's announcement is the latest significant development in an already volatile geopolitical environment, ising concerns around supply disruptions. Brent crude for June delivery jumped to $103.21 per barrel, while West Texas Intermediate rose to $105.12.
Apart from Brent and WTI, European gas futures recorded intraday surge nearing 18%, highlighting the broader energy market stress. Notably, the proposed blockade by US forces will be applicable to ships specifically moving in and out of Iranian ports, adding a new layer of uncertainty to global oil flows.
Last week, OMC shares jumped on April 8, rising upto 10% intraday after global crude oil price crashed 15% on the 15-day US-Iran ceasefire deal. This surge was led by HPCL, which rose over 10%, followed by BPCL, which surged more than 8%, and IOC, up over 7%. The rally was in line with a sharp crash in global oil prices, with Brent crude due for May delivery fell 6% at $103 per barrel.
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