Crude Oil Price Rise: HPCL, BPCL Decline Up To 4.5% On Margin Worries; ONGC, Oil India Gain

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Posted by AI on 2025-06-12 14:24:11 | Last Updated by AI on 2026-06-27 02:37:44

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Indian oil marketing companies (OMCs) suffered a selloff on June 12, 2022, as global crude prices rose over 4% with concerns of potential margin pressures. This comes as a stark contrast to oil-producing peers such as ONGC and Oil India, which saw gains during the day.

Shares of Hindustan Petroleum Corp Ltd (HPCL) declined 3.7%, Bharat Petroleum Corp Ltd (BPCL) dropped 4%, and Indian Oil Corp (IOC) decreased by 1.5%. All three companies trade lower than their respective 52-week highs, with HPCL and BPCL suffering the most at -4.5% and -9% respectively. In contrast, Oil & Natural Gas Corp (ONGC) saw a rise of nearly 4%, and Oil India Ltd gained close to 3% during the day.

This price movement follows global crude prices rising to their highest level since late 2018, posing a concern for OMCs and their margins. The increase is due to rising tensions in the European countries against Russia, which may lead to reduced oil supply from the country. Experts believe that the stock price movement indicates concerns about the impact of higher crude prices on OMCs' margins, particularly HPCL and BPCL. However, the rise in oil prices is a boon for oil producers like ONGC and Oil India.

The rise in crude oil prices is a concern for oil marketing companies, as it may impact their margins. However, it is a welcome development for oil producers like ONGC and Oil India. The stock price movement reflects these concerns and expectations.

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