BPCL, Asian Paints, SpiceJet Fall As Brent Crude Climbs Above $107 Per Barrel

Crude-sensitive stocks remained under pressure on May 12 as Brent crude oil prices stayed above $100 per barrel and briefly crossed $107 amid continued geopolitical tensions in West Asia.

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Shares of oil marketing companies, aviation firms and paint manufacturers declined during the session due to concerns over rising fuel and raw material costs.

Bharat Petroleum Corporation Ltd (BPCL) fell 2.26% to ₹287.80, while Hindustan Petroleum Corporation Ltd (HPCL) declined 2.08% to ₹369.95. Indian Oil Corporation Ltd (IOCL) also slipped 2% to ₹137.56 during the trading session.

Aviation Stocks Decline On Higher Fuel Cost Concerns

Aviation companies witnessed selling pressure as rising crude oil prices increased concerns around higher aviation turbine fuel expenses.

InterGlobe Aviation, the parent company of IndiGo, declined 2.35% to ₹4,198.50. SpiceJet emerged among the top losers in the segment and dropped 4.95% to ₹12.67.

The decline in airline stocks came as crude oil prices continued to rise due to uncertainty around global supply disruptions.

Paint Stocks Trade Lower

Paint companies also traded weakly as the sector remains dependent on crude-linked raw materials. Asian Paints declined 2.47% to ₹2,502.60, while Berger Paints India fell 1.12% to ₹488.30.

Higher crude prices generally increase input costs for paint manufacturers because several raw materials used in the sector are petroleum derivatives.

Brent Crude Stays Above $100

Global crude oil prices remained elevated after fresh comments from U.S. President Donald Trump regarding the ongoing conflict involving Iran.

According to reports, Trump described Iran’s response to U.S. proposals aimed at ending the conflict as “totally unacceptable,” adding to uncertainty around the situation in West Asia.

Brent crude rose more than 4% intraday and touched around $105.94 per barrel before briefly moving above $107 during trade.

Investment bank JP Morgan said crude oil prices may remain in the “low $100s” for most of the year, even if the Strait of Hormuz reopens next month.

The bank stated that oil supply flows from the region may not normalise immediately despite any improvement in shipping activity.

The rise in global crude prices has continued to impact sectors that are directly dependent on fuel costs and crude-linked raw materials in the Indian stock market.