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Last Updated : Jun 28, 2018 03:01 PM IST | Source: Moneycontrol.com

HPCL, IOC Jet Airways hit fresh 52-week low after Brent crude rises above $77.50/bbl

Any rise in crude oil prices is always negative for not only oil marketing companies but also aviation firms.

 
 
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Oil retailers and aviation stocks extended losses with some hitting fresh 52-week lows on Thursday after the crude oil prices increased further on supply disruptions.

Hindustan Petroleum Corporation (down 6.5 percent intraday), Indian Oil Corporation (4 percent) and Jet Airways (3 percent) hit fresh 52-week lows today.

Bharat Petroleum Corporation (down 5 percent intraday), SpiceJet (4 percent) and InterGlobe Aviation (1.6 percent) were also under pressure.

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Any rise in crude oil prices is always negative for not only oil marketing companies but also aviation firms.

PSU oil retailers are allowed to pass on rising cost due to higher crude prices to consumers to some extent but beyond a certain limit it would be difficult for those companies to pass on the cost and that hit their profitability.

Aviation companies are always dependent upon crude as it is their fuel cost, so any increase in oil prices is always have major impact on their profitability.

Crude oil prices rallied sharply in the previous session due to record demand, and Unplanned supply disruptions from Canada to Libya and Venezuela, but fell marginally today as experts feel the physical markets remained well supplied.

Brent crude futures, the benchmark for international oil prices, were at $77.50 per barrel, down 0.15 percent from their last close while US West Texas Intermediate (WTI) crude futures were at $72.50 a barrel, down 0.36 percent from their last settlement.

At 10:28 hours IST, Jet Airways was down 2.56 percent at Rs 344.60, SpiceJet down 2.6 percent at Rs 106.55 and InterGlobe Aviation fell 0.92 percent to Rs 1,139 on the BSE.

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First Published on Jun 28, 2018 11:00 am
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