Shares of Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals fell up to 3% on October 23 as Brent crude prices jumped more than 3%, extending gains from the previous session. Higher crude oil prices threaten margins for oil marketing companies
A report, which said Indian refiners are reviewing Russian oil contracts after US sanctions, added to the bearish sentiment
Indian state-owned refiners are reviewing their Russian oil trade documents to ensure no supply will be coming directly from Rosneft and Lukoil after the US sanctioned the oil companies, a source with direct knowledge of the matter told Reuters on October 23.
President Trump on October 22 imposed Ukraine-related sanctions on Russia for the first time in his second term, targeting Lukoil and Rosneft as his frustration grows with Russian President Vladimir Putin.
The US Treasury has given companies until November 21 to wind down their transactions with the Russian oil producers, according to a release on the sanctions on Wednesday.
At 12:30 pm on October 23, HPCL shares were trading 2.5% lower apiece while those of BPCL and IOC were trading 1.6% and 2.1% lower, respectively. Meanwhile, MRPL stock declined 3%.
The OMCs are reviewing bills of lading for Russian crude arriving after November 21 to make sure it is not coming directly from Rosneft or Lukoil, a source told Reuters.
Indian state refiners rarely buy Russian oil directly from Rosneft and Lukoil as their purchases are typically done through intermediaries, trade sources told Reuters.
Meanwhile, Reliance said it is 'recalibrating' Russian oil imports to align with Centre's guidelines.
"Recalibration of Russian oil imports is ongoing and Reliance will be fully aligned to GOI (Government of India) guidelines," a Reliance spokesman said in response to a query to Reuters on whether the company plans to cut its crude imports from Russia.
So far in 2025, HPCL shares rose 8.5% while those of IOC and BPCL rose 10.5% and 14%, respectively.
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