Trump's executive order and tariff threat sent crude lower, OMC shares higher

US President Donald Trump's executive order to boost American oil production and a tariff threat on Canadian oil sent international crude prices sharply lower, which in turn lifted shares of domestic oil marketing companies on a day of intense market selloff.

Shares of IOC, HPCL and BPCL ended the session with gains of 0.5%, 2.7% and 1.1% respectively on a day the benchmark Nifty 50 fell by 1.4% to wipe off more than Rs 7.2 lakh crore in market capitalization.

Trump's declaration of a national energy emergency, in an effort to boost oil and gas production triggered a sharp fall in crude oil prices, with Brent falling below $80 per barrel and West Texas Intermediate near $77. The anticipation of rise in oil production after Trump’s 'drill baby drill' focus was a major factor behind the crude cooloff.

India could also increase its purchases of US oil and gas after President Donald Trump's executive order to ramp up crude oil production. "There is a possibility of more energy purchase between India and US," Oil Minister Hardeep Singh Puri said on the sideline of an event on January 21. "More US energy coming into the market is welcome," he added.