IOC, HPCL and BPCL Shares Gain as Crude Oil Prices Ease; ONGC, Oil India Fall

Stocks of many oil and gas companies witnessed an uptick on September 30, Wednesday, due to a decrease in the price of crude oil, which has made things easier for firms that gain from cheaper crude. 

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Some of the companies that witnessed an increase in their stock price include Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), and GAIL. Stock price of oil and gas firms gained up to 3% intraday on the BSE. 

Petronet LNG, Indraprastha Gas and Reliance Industries also traded higher. 

The movement came after crude oil prices recorded their sharpest fall in more than a week. Crude dropped 2.5% on Tuesday as signs emerged that Middle East supplies were moving closer to levels seen before the war. 

Saudi Arabia has also resumed exports from the port of Yanbu in the Red Sea, which offers an alternative channel to the Strait of Hormuz. 

The international benchmark for crude oil, Brent, was hovering around $103 per barrel as of Wednesday morning. 

Low oil prices can be a boon for the oil marketing companies, IOC, HPCL and BPCL as it helps them make more profits from retail sales of petrol and diesel. 

The picture was different for companies involved in oil exploration and production. ONGC shares fell around 1% during the session, while Oil India declined 3%. Falling crude prices can weigh on these companies as lower prices affect the value they realise from oil production. 

The latest decline in crude comes after oil prices remained elevated amid disruptions to global supplies. 

Oil prices will still remain very much contingent upon the state of affairs in the Strait of Hormuz region. According to the report, InCred Capital Wealth forecasted that Brent crude would average out at $88 per barrel in 2026, falling down to $76 per barrel in 2027 and $72 in 2028. 

According to the IEA’s estimates, the oil market is expected to shift from a deficit of 1.7 million barrels per day in 2026 to an excess of 4.6–5.1 million barrels per day in 2027, due to the recovery of 8 million barrels per day of disrupted and redirected supply. 

For Wednesday’s session, however, the immediate trigger was the pullback in crude. Oil marketing and gas-related stocks moved higher, while upstream producers headed in the opposite direction as investors reacted to the change in oil prices.