Shares of Indian Oil, HPCL, and BPCL gain up to 6% as crude prices continue to fall

Shares of major Indian oil marketing companies posted strong gains on Wednesday as global crude oil prices extended their decline. Stocks of Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) rose by up to 6 % after benchmark crude futures weakened.

IOC’s share price climbed to around ₹163.30 per share during the session, marking a gain of more than 6 %. HPCL ended at about ₹468.85, up roughly 3.5 % on the day, while BPCL closed near ₹348.10, gaining around 2.2 %.

The primary trigger for this rally was the slide in global oil prices. Brent crude futures dropped to around US$64.33 a barrel, while U.S. West Texas Intermediate (WTI) crude futures slipped close to US$60.08 a barrel. The weakness in oil prices is attributed to renewed speculation that OPEC+ could approve a modest increase in oil output, reportedly around 137,000 barrels per day, in December — a move seen as adding to concerns of an oversupplied market.

For oil marketing companies like IOC, HPCL and BPCL, lower crude prices tend to ease input costs — since these firms import and process crude oil — thereby improving refining margins and profitability. The decline in crude prices was thus viewed as a catalyst for better earnings prospects, lifting investor sentiment across the sector.

In terms of performance, IOC led with the largest gain at around 6 %, followed by HPCL’s 3.5 % rise and BPCL’s 2.2 % increase. The variation in price movement among the companies is largely due to differences in refining margins, inventory positions, and exposure to retail fuel pricing.

Earlier in October, these stocks had faced pressure when crude prices surged — HPCL and BPCL fell 4 % and 2.66 %, respectively — as rising oil prices threatened to compress margins. The recent reversal in global crude trends has therefore provided much-needed relief to these companies.

Looking ahead, analysts suggest that the outlook for oil marketing companies will depend on whether crude prices remain subdued, any changes in OPEC+ production strategy, and how refining margins evolve in the upcoming quarters.

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