OMC stocks extend gains on global supply concerns; IOC, HPCL rise

Oil prices fell more than 2 percent on Tuesday, dropping for a third consecutive session as reports of swelling inventories and forecasts of record US and Russian output combined with a sharp sell-off in global stock markets.

US crude oil dropped $1.36 or 2.7 percent to a low of $48.52, its weakest since September 2017, before recovering to around $49.00 by 0840 GMT. North Sea Brent crude fell $1.51, or 2.5 percent, to a low of $58.10 and last traded around $58.61, down $1.00. Both benchmarks have shed more than 30 percent since early October due to swelling global inventories.

The Organization of the Petroleum Exporting Countries and other oil producers agreed this month to curb production by 1.2 million barrels per day (bpd), equivalent to more than 1 percent of global demand, in an attempt to drain tanks and boost prices.

Oil & gas stocks were trading on positive note intraday on Tuesday following the fall in global prices. Share price of Indian Oil Corporation was trading higher up over 1 percent followed by Hindustan Petroleum Corporation and Bharat Petroleum Corporation.