IOC, Asian Paints, Apollo Tyres, other crude-sensitive stocks fall up to 4% as oil prices rise

Crude-sensitive stocks fall

Crude-sensitive stocks dropped in trade on December 18 as oil prices soared amid supply concerns due to blockade of Venezuelan oil tankers and US possibly preparing more sanctions for Russia.

Brent crude rose to $60 per barrel. US West Texas Intermediate crude meanwhile was up 0.68 percent to $56.32 per barrel.

US prepares new sanctions for Russia, says report:

The United States is preparing a fresh round of sanctions for Russia’s energy sector if the latter’s President Vladimir Putin rejects the peace deal with Ukraine, Bloomberg reported citing people familiar with the matter.

Kremlin is aware that some US officials are planning to introduce new sanctions against Russia, Putin’s spokesman Dmitry Peskov told reporters on Wednesday, according to the Interfax news service. “It’s obvious that any sanctions are harmful for the process of rebuilding relations,” he said.

Trump orders 'blockade' of Venezuelan oil tankers:

Earlier this week, US President Donald Trump ordered a “blockade” of all sanctioned oil tankers entering and leaving Venezuela. The administration has moved thousands of troops and nearly a dozen warships, including an aircraft carrier, to the region.

"For the theft of our Assets, and many other reasons, including Terrorism, Drug Smuggling, and Human Trafficking, the Venezuelan Regime has been designated a FOREIGN TERRORIST ORGANIZATION," Trump wrote on Truth Social. "Therefore, today, I am ordering A TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS going into, and out of, Venezuela."

Oil prices edged us as a result of these developments.

Crude-sensitive stocks:

The shares of oil marketing companies lead loses among the crude-sensitive pack. Indian Oil Corporation (IOC) shares fell nearly 4 percent to close at Rs 161.73 apiece. Bharat Petroleum Corporation (BPCL) shares fell over 1 percent, while Hindustan Petroleum Corporation (HPCL) shares closed in the red with marginal losses.

Crude oil is one of the major raw materials for paint companies, hence the rising oil prices is expected to impact the paint companies as well. IndiGo Paints shares fell more than 1.5 percent to close at Rs 1,180 apiece, while Asian Paints shares fell around 1 percent to emerge as one of the top losers on the Nifty 50 index.

Tyre stocks also fell on the back of rising oil prices. JK Tyre & Industries and Apollo Tyres shares fell around 1 percent each.