Oil marketing and aviation stocks rally as crude prices fall

Shares of oil marketing companies, aviation firms and paint manufacturers rose on Monday after Brent crude prices fell sharply. Investors welcomed easing pressure on energy markets, while expectations of smoother oil supplies supported gains across crude-sensitive sectors

New Delhi: Shares of oil marketing companies, aviation firms and paint manufacturers rallied on Monday amid a sharp decline in crude oil prices.

The stock of Hindustan Petroleum Corporation Ltd rallied 3.36 per cent, Bharat Petroleum Corporation Ltd edged higher by 2.71 per cent, and Indian Oil Corporation climbed 2.48 per cent on the BSE.

---

Shares of SpiceJet surged 6.72 per cent, while InterGlobe Aviation rose 3.59 per cent.

Among paint manufacturers, JSW Dulux rallied 2.15 per cent, Indigo Paints climbed 1.30 per cent, Shalimar Paints advanced 0.82 per cent, Berger Paints gained 0.75 per cent, and Kansai Nerolac Paints rose marginally by 0.18 per cent.

Brent crude, the global oil benchmark, dropped 4.55 per cent to USD 83.36 per barrel.

“Oil-sensitive segments such as aviation, paints, tyres and cement continued to attract buying interest following the sharp decline in crude oil prices,” Ajit Mishra, SVP, Research, Religare Broking, said.

Shares of oil marketing companies, aviation firms and paint manufacturers had ended higher on Friday as well.

The US and Iran finalised a deal to end their 107-day war and reopen the Strait of Hormuz, the narrow waterway through which one-fifth of global oil supplies are transported, following an in-person signing of the agreement in Switzerland scheduled for Friday.

US President Donald Trump made the announcement on Truth Social on Sunday evening, easing pressure on global energy markets. Officials said the peace agreement would be signed on June 19 in Switzerland.

“On the macro front, Brent crude tumbled nearly 5 per cent to around USD 82.9 per barrel, its lowest level since March, providing relief to India’s inflation outlook and external balances,” Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

A reopening or normalisation of shipping through the Strait of Hormuz would provide significant relief for India, one of the world’s largest crude importers, by easing concerns over oil supplies, lowering freight costs and reducing pressure on inflation.

The narrow waterway between Iran and Oman handles roughly a fifth of global oil consumption and serves as the primary export route for major Gulf producers, including Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Qatar, all key energy suppliers to India.

The supply of crude oil, the raw material used to make fuels such as petrol and diesel, and natural gas, the feedstock used to generate electricity, produce fertiliser, power automobiles through CNG and supply cooking gas to households, through the strait has been disrupted since the start of the Iran war in late February. This triggered sharp increases in crude oil prices, shipping insurance premiums and freight rates.