OMCs rise as crude falls
HPCL hit a new high today at Rs.333.45, rising 3% while BPCL rose over 2.5% to Rs.419.50, which is just a little over 3% away from its 52-week high of Rs.428.80. Indian Oil Corp also is in the green, going up 3% at Rs.170.40, while its 52-week high is at Rs.177.20.
The Oil Marketing companies (OMCs) are all up in the green today morning as international price of crude oil fell. Brent slipped below its key level of $61/bbl and WTI fell below $53/bbl.
The pressure on oil prices has gone up as the trade war between USA and China escalates and there is worry that it will affect the demand growth. With Trump threatening tariff on Mexico, the crude price have slipped further.
Added to that, the increasing oil supply in USA has also kept the oil prices under pressure.
The Baker Hughes report released on Friday night stated that as at 31st May, the number of operating oil rigs rose by 3 to 800 and the total active oil rig count was up by 1 more at 984.