Chennai Petroleum, MRPL, and Oil India Advance Amid Rising Brent Prices to $100 per Barrel

Stocks in oil and refining companies found support during the session of September 9, even as the overall market remained confused about its direction. As Brent prices continued to edge closer to the $100 level per barrel, stocks like Chennai Petroleum, MRPL, and Oil India among others were advancing in the segment. 

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The Nifty Oil & Gas index was up by 0.25% at 11 am, despite the Nifty 50 being down 0.40%. Out of the 15 stocks in the index, nine were in the green. 

Chennai Petroleum Corporation Limited (CPCL) topped the list with an advance of 5% to ₹1,532. Mangalore Refinery and Petrochemicals (MRPL) was up by 3.3% to ₹178.50, with Oil India gaining 1.7% to ₹504. 

Adani Total Gas added to the gains, up by 2% to ₹620.40, with ONGC gaining 0.50% to ₹236.95. 

Oil Marketing Companies Miss the Rally 

The mood was much quieter among the oil marketing companies. 

Indian Oil Corporation edged 0.40% higher to ₹134.90, while Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) slipped 0.10% each. BPCL was trading at ₹303.75 and HPCL at ₹346.50. 

The difference in stock performance came as international crude prices remained elevated following another escalation in West Asia. 

Brent crude was trading 1.44% higher at $99.33 a barrel at the time cited in the report, putting the global oil benchmark within touching distance of $100. 

West Asia Conflict Keeps Oil Market on Edge 

The latest rise in crude came as the conflict in West Asia widened further. 

Iran-backed Houthi forces struck four cities in southern Saudi Arabia, bringing the US ally deeper into the fighting. US forces, meanwhile, targeted several Iranian oil tankers, while Iran struck a US base in Jordan. 

US Central Command said American forces had destroyed five Iranian crude tankers. The action followed two ballistic-missile strikes by Iran’s Revolutionary Guard on a US warship over the preceding two days. 

These developments kept crude prices elevated on Wednesday and, in turn, put oil-related stocks firmly in focus in India. 

For the morning session, that translated into a clear divergence within the sector. Refiners and upstream names such as Chennai Petroleum, MRPL and Oil India moved higher as Brent approached $100, while BPCL and HPCL remained slightly in the red.