INSUBCONTINENT EXCLUSIVE:
Shares of oil market companies were trading lower on Tuesday after brent crude oil prices hit a fresh four-year high amid looming US
sanctions against Iran and an apparent reluctance by OPEC and Russia to raise output to offset the expected to hit to supply.
Bharat
Petroleum Corporation (BPCL), Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation (HPCL) were down 2.33 per cent, 2.10 per cent
and 2.68 per cent at Rs 359.05, Rs 151.45 and Rs 241.75 at around 2.10 pm (IST).
The United States from November 4 will target Iran's oil
exports with sanctions, and Washington is putting pressure on governments and companies around the world to fall in line and cut purchases
from Tehran.
Commodity traders Trafigura and Mercuria said on Monday that Brent could rise to $90 per barrel by Christmas and pass $100 in
early 2019, as markets tighten once United States sanctions against Iran are fully implemented from November
JP Morgan said US sanctions on Iran could lead to a loss of 1.5 million bpd, while Mercuria warned that as much as 2 million bpd could be
negative stock price performance in the past one year, we maintain our bearish view on oil marketing companies
We expect the profitability to be volume driven due to flat GRMs and Marketing margins
