Brent Below $105 Post-Close; OMCs in Focus

Oil marketing companies were already firm in today’s session.

gained 3.41%, BPCL 2.86% and HPCL 2.19%, with Brent trading around $108.65 when Indian markets closed at 3:30 pm IST. After the close,brent crude fell further and slipped below $105 as hopes of US-Iran diplomacy rose. Mediated talks have kept open the possibility of reopening the Strait of Hormuz, as per media reports. No agreement has been confirmed, and traders trimmed part of the geopolitical risk premium. Risk assets are also trading higher on the risk-on mood. On the daily chart, Brent has moved below the $109 support and is testing the $105 zone. The next supports to watch are $102 and the 50 SMA near $102. Since this additional fall came after the Indian close, it is not yet reflected in today’s prices, so tomorrow’s opening reaction in these stocks is worth observing. Lower crude generally eases input costs for oil marketing companies, but margins also depend on fuel pricing, and news-driven moves in crude can reverse quickly. Global markets move after Indian trading hours; a fall in crude after the close can influence oil marketing stocks at the next day’s open. Disclaimer: This is for educational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions. SEBI Registered Research Analyst — INH000025212.