Oil retailers, aviation stocks rally 3-20% after sharp correction in crude prices

The correction in oil prices was on signs that output from the three top crude producers, Russia, the United States and Saudi Arabia, would climb to meet concerns about supply amid strong demand.

Brent crude futures were at $75.04 per barrel, down 1.83 percent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $67.19 a barrel, down 2.49 percent, from their last settlement.

Brent and WTI have respectively fallen by 5.5 percent and 7.5 percent from peaks reached earlier in May.

The Organization of the Petroleum Exporting Countries (OPEC), as well as top producer but non-OPEC member Russia, started withholding supplies in 2017 to tighten the market and prop up prices, which in 2016 fell to a more than a decade low of under $30 per barrel.

But prices have soared since the start of the cuts, with Brent breaking through $80 per barrel earlier in May, triggering consumer concerns that high prices would crimp economic growth and stoke inflation.

Following the increase in international crude oil prices, OMCs started hiking prices immediately after the Karnataka elections.

Since the dynamic pricing system resumed on May 14, petrol and diesel prices have risen by Rs 3.64 and Rs 3.24 respectively in the last 15 days in Delhi.

At 10:06 hours IST, the share price of Indian Oil Corporation was down 5.56 percent at Rs 172.70, Hindustan Petroleum Corporation down 4.88 percent at Rs 309.50 and Bharat Petroleum Corporation down 5.39 percent at Rs 401.80 on the BSE.

Jet Airways was trading up 6.09 percent at Rs 429.55, SpiceJet up 11.95 percent at Rs 114.25, and InterGlobe Aviation up 2.67 percent at Rs 1,245.45.

(With inputs from CNBC)