Crude oil fell on expectations of a possible agreement between America and Iran. After the increase in the prices of petrol and diesel, there was a rise in the shares of public sector oil companies on Monday. Shares of HPCL, BPCL and Indian Oil saw a rise of four to six percent.
Shares of Hindustan Petroleum Corporation Limited (HPCL) rose 5.86 percent to reach the day’s high of Rs 412.55 on BSE. Bharat Petroleum Corporation Limited (BPCL) shares stood at Rs 309, up 4.55 per cent, while Indian Oil Corporation (IOC) shares rose 4.15 per cent at Rs 145.30.
Oil prices increased for the fourth time in 2 weeks
This rise in the shares of oil companies was seen after the prices of petrol and diesel increased from Rs 2.61 to Rs 2.71 per liter on Monday, which is the fourth increase in less than two weeks. With the latest increase in the prices of petrol and diesel, the prices of petrol and diesel have increased by a total of about Rs 7.5 per liter since May 15, which has deepened the concern about inflation and increase in transportation costs.
90% of the fuel market is captured
Public sector oil companies Indian Oil, Bharat Petroleum and Hindustan Petroleum together control about 90 percent of the country’s fuel market. According to analysts, global crude oil prices have increased by more than 50 percent since the end of February. The reason for this is said to be tension in Iran after the US-Israel attacks and the possibility of supply disruption from the Strait of Hormuz. The Strait of Hormuz is the main route for global oil transportation. It is expected that as good news comes from global labels, further decline in crude oil prices may be seen. Amid Iran tension, crude oil had broken all records.
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