HPCL, BPCL, Indian Oil shares jump up to 6% as oil slumps on Trump’s tariffs and OPEC+ output hike

HPCL

The shares of oil companies surged on March 4 as oil prices dropped after US President Donald Trump paused military aid to Ukraine, his tariffs on China, Canada and Mexico took effect and Organization of Petroleum Exporting Countries alliance (OPEC+) decided to increase its oil production.

The shares of Hindustan Petroleum Corporation (HPCL) surged nearly 6 percent to trade at Rs 315 apiece. Despite today’s gain, the stock has seen significant fall in the past few months. HPCL shares have declined over 29 percent in the last six months.

Bharat Petroleum Corporation (BPCL) shares meanwhile rose over 3 percent to trade at Rs 250 apiece. The stock is currently hovering near its 52-week low of Rs 234.15, and is significantly lower that its 52-week high of Rs 376 per share.

The shares of Indian Oil Corp recorded nearly 3 percent rise to trade at Rs 118 apiece. The stock has so far fallen over 5 percent in the past one month.

Brent crude futures fell nearly 97 cents, or 1.35 percent, to $70.66 a barrel.

Notably, the OPEC+ has decided to proceed with a planned oil output increase of 138,000 barrels per day, the first since 2022. The upcoming rise in oil supply significantly weighed on oil prices.

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Additionally, US has paused military aid to Ukraine. The market viewed the growing distance between the White House and Ukraine as a sign of a potential easing of the war, that could lead to sanctions relief for Russia and more oil supply returning to the market.

Goldman Sachs analysts have said that Russian oil flows are constrained more by Russia’s OPEC+ production target than sanctions and that an easing might not significantly increase flows.

(With inputs from Reuters)