HPCL, IndiGo Gain as Brent Crude Slips Below $76 Per Barrel

Shares of companies sensitive to crude oil prices advanced on June 24 after Brent crude extended its decline and slipped below the $76-a-barrel mark amid signs of easing disruptions in the Strait of Hormuz.

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At around 2:50 pm, InterGlobe Aviation, which operates IndiGo, was trading 4.3% higher at ₹5,185.3 apiece. Among oil marketing companies, HPCL, BPCL and Indian Oil Corporation gained up to 3% during the session.

Brent crude futures were down $1.37, or 1.8%, at $75.71 a barrel by 0805 GMT, while U.S. West Texas Intermediate crude fell $1.08, or 1.5%, to $72.13. Brent touched an intraday low of $75.60, its lowest level since February 27. WTI also fell to its weakest level since March 3.

Strait Of Hormuz Traffic Normalises

Ship movements through the Strait of Hormuz showed signs of improvement, with vessels increasingly operating with active satellite signals. Data tracking maritime activity showed that three supertankers that had been stranded earlier crossed the waterway on Tuesday.

The International Maritime Organization is working on plans to facilitate the passage of hundreds of ships that had faced disruptions following the conflict in the region. Oman and Iran have also continued discussions related to navigation management in the strait.

U.S. Secretary of State Marco Rubio said any attempt to impose transit charges on vessels using the waterway would be inconsistent with international law.

Oil Market Responds To Diplomatic Developments

Reuters quoted Tim Waterer, Chief Market Analyst at KCM Trade, as saying that the market was increasingly factoring in the possibility of Iranian oil returning to global markets and a normalisation of traffic through the Strait of Hormuz.

Crude oil prices have also been pressured by the 60-day sanctions waiver granted by Washington after initial talks with Tehran, allowing Iranian crude exports to resume. Hostilities in Lebanon have eased as well, bringing energy prices closer to levels seen before the conflict.

U.S. President Donald Trump said Iran had agreed to long-term nuclear inspections, although Tehran stated that no such commitment had been made. Reuters quoted Mark Malek, Chief Investment Officer at Siebert Financial, as saying that unresolved issues related to inspections and the nuclear programme continue to pose risks.

Meanwhile, market participants are tracking inventory data from the American Petroleum Institute. Industry data showed U.S. crude stockpiles fell by 765,000 barrels in the week ended June 19. A Reuters poll of nine analysts had estimated an average decline of around 4.5 million barrels.

The decline in crude prices provided support to sectors such as aviation and fuel retailing, where lower input costs typically improve margins.