The shares of oil marketing companies (OMC) surged on October 29, as global oil prices extended decline. This comes as a potential output increase by the OPEC+ increased concerns around over supply.
Oil prices have now extended a three-day fall, with Brent crude futures falling to $64.33 a barrel, and US West Texas Intermediate crude futures dropping to $60.08.
Brent and WTI had registered their biggest weekly gains last week since June after US President Donald Trump imposed sanctions on Russia for the first time in his second term, targeting major oil companies Lukoil and Rosneft. However, doubts now persist that the sanctions would be offset by oversupply and talk of an OPEC+ output increase.
OPEC+, the world’s largest grouping of oil-producing nations, is planning for a modest output boost in December, Reuters reported citing people familiar with the matter. Several members of the organization that pumps about half the world's oil, are likely to agree on Sunday to increase December output targets by another 137,000 bpd, the report added.
The fall in oil prices will likely help the margins of the OMC firms.
Top gainers among OMC stocks:
Indian Oil Corporation (IOC) shares gained more 6 percent to trade at Rs 163.30 apiece. Notably, the company on October 27 had reported a whopping 285 percent on-year jump in consolidated net profit for the second quarter of the financial year FY26 on October 27, despite a marginal increase in revenue.
Revenue from operations for the second quarter came in at Rs 2.06 lakh crore, up 3.9 percent from Rs 1.98 lakh crore a year ago. Its net profit attributable to shareholders was at Rs 7,817.55 crore for the quarter that ended September as against Rs 169.58 crore in the same quarter last year.
Hindustan Petroleum (HPCL) shares jumped more than 2 percent. The company is set to release its results for the second quarter of the financial year 2026 today. Bharat Petroleum (BPCL) shares also gained more than 2 percent. Mangalore Refinery and Petrochemicals shares gained around 4 percent.
The Nifty Oil & Gas index is up nearly 2 percent, as seen at 2.07 pm.
(With inputs from Reuters)
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