MRPL, Chennai Petroleum Shares Rise 5% on Higher Crude

and Chennai Petroleum shares surged around 5% on September 28, outperforming a weak broader market, as Brent crude prices jumped nearly 3% above $107 per barrel amid renewed US-Iran tensions. Rising crude prices and tighter fuel supplies have lifted refining crack spreads, supporting expectations of stronger gross refining margins for refiners. MRPL opened at ₹164.25 and climbed 5.2% to an intraday high of ₹173.50, while Chennai Petroleum opened at ₹1,381.40 and gained 5.1% to ₹1,446.25. The gains came even as the Sensex fell more than 1,000 points, or 1.4%, during the session. The rise in crude prices has increased the spread between crude oil and refined petroleum products, known as crack spreads. Analysts cited in the report said the market could be anticipating an improvement in refining margins as oil prices remain elevated. The move also comes against a backdrop of continued geopolitical uncertainty surrounding the Strait of Hormuz and global fuel supplies.