Mumbai, June 17 (IANS) Shares of state-run oil marketing companies (OMCs) traded higher on Wednesday as global crude oil prices extended their decline amid easing geopolitical tensions and expectations of increased Iranian oil supply.

Shares of Hindustan Petroleum Corporation Ltd (HPCL) rose as much as 2.26 per cent to hit an intraday high of Rs 410.45 on the BSE as of 1:20 pm.

Similarly, Bharat Petroleum Corporation Ltd (BPCL) stock advanced 2.46 per cent to hit an intraday high of Rs 319.50 so far in the session.

Meanwhile, Indian Oil Corporation Ltd (IOCL) shares climbed 1.61 per cent to Rs 147.45, hitting an intraday high on the exchange.

The rally in OMC stocks came after crude oil prices fell sharply on hopes that a proposed agreement between the US and Iran could pave the way for additional Iranian crude exports and ease supply concerns in global markets.

International benchmark Brent crude was trading below $80 per barrel, hovering around a three-month low after a steep decline over the past few sessions.

While US West Texas Intermediate (WTI) crude declined about 1 per cent, with trading near $75 per barrel.

Reports claim that the interim agreement could allow Iran to resume crude oil sales while creating a framework for broader negotiations aimed at ending hostilities and addressing concerns related to Tehran’s nuclear programme.

In addition, the proposed arrangement is expected to facilitate the reopening of the Strait of Hormuz — a critical global energy shipping route — and improve the movement of merchant vessels through the region.

“Brent crude has declined steeply by around 16 per cent in the last 5 days to about $79, thereby removing the major macro concern of a rising BoP deficit in India,” the market experts said.

They further noted that from the market perspective, another distinct positive trend is the tapering of the FII outflows. This trend is likely to continue since rupee has been steadily strengthening and can appreciate further.

On Wednesday, the broader equity market traded in positive territory during the session, supported by improved global sentiment and easing concerns over energy prices.

–IANS

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