Hindustan Petroleum share price gains more than 5%, scales 52 week high. IOCL, BPCL gain up to 4% as crude tumbles | Mint
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Business News/ Markets / Stock Markets/  Hindustan Petroleum share price gains more than 5%, scales 52 week high. IOCL, BPCL gain up to 4% as crude tumbles
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Hindustan Petroleum share price gains more than 5%, scales 52 week high. IOCL, BPCL gain up to 4% as crude tumbles

2Stock Market Today- Hindustan Petroleum share price gained more than 4% while Indian Oil Corporation and Bharat Petroleum Corporation gained more than 1.5% as falling crude prices lifted their marketing margin outlook. The Refining margins are also rebounding improving earnings prospects.

Hindustan Petroleum share price rises up to 5% to scale 52 week highsPremium
Hindustan Petroleum share price rises up to 5% to scale 52 week highs

The share prices of Oil Marketing companies as Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation Ltd (IOCL) saw smart gains on Tuesday with decline in Crude oil prices. While Hindustan Petroleum Corporation share price with gains of more than 5% scaled 52 week highs in morning trades, Indian Oil Corporation and Bharat petroleum corporation stock price also gained up to 4.0% on the BSE.

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 The Brent Crude prices that had risen close to $100 a barrel in September, dipped belwo $80 a barrel levels. The Israel Hamas conflict has not impacted the crude supplies as was being anticipated. 

The decline in crude oil prices is improving sentiments towards the OMCs as the marketing margin outlook improves. Marketing margins are the margins that companies earn on selling fuel from the retail outlets. The OMCs were absorbing the impact of higher crude prices as retail fuel prices had not seen any change despite rise in Crude prices. With Crude prices having corrected significantly, the OMCs will see normalization in their marketing margins .

Hindustan Petroleum Corporation that derives higher contributions from retail sales petroleum product in its portfolio saw maximum rise in share prices.

For other OMC’s as Indian Oil Corporation and Bharat Petroleum Corporation while the declining crude prices improve the marketing margin outlook , the positive is also accruing from improving refining margins. Indian Oil Corportation derives higher contributions from refining of crude oil into various other petroleum products. 

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The benchmark Reuters Singapore complex refining margin that had declined sharply by 54% sequentially to $4.4 a barrel, from $9.6 a barrel in 2QFY24, underpinned by a decline in spreads for all products except Liquefied Petroleum Gas (LPG), are also rebounding. As per Nomura Research the benchmark Singapore refining margins had improved to $ 6.4 a barrel by 20th November 2023. This also improved sentiments specially towards Indian Oil Corporation as Bharat Petroleum Corporation and Indian Oil Corporation also benefit

 

 

 

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ABOUT THE AUTHOR
Ujjval Jauhari
Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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Published: 28 Nov 2023, 10:21 AM IST
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