Oil Marketing Companies (OMCs) – HPCL and BPCL are among the top five gainers on the BSE currently, rising 5% to Rs.32425 and rising 4.5% to Rs.516.75, a new high, respectively. IOC is also up in the green at Rs.152.15, going up over 2.5%.
The reasons why OMCs stocks are up:
- Brent crude remained stable and low at $57.73/barrel – it has been falling for seven consecutive days – the longest losing streak since a year.
- US announced that its inventories swelled by a more-than-expected 3.1 million barrels last week.
- US economic data came in to suggest that demand has tapered off and there is a sense of pessimism.
- The ongoing blow hot-blow cold trade war between US and China is pushing the global economy towards further slowdown.
- Saudi Arabia’s increased pumping after the fire and speedy recovery in supply plus some signs of tensions easing in the Persian Gulf has pulled down the prices.