Indian Refinery Stocks Slide as Crude Surges on Iran War Fears
Shares of major Indian refiners fell sharply on Monday after global oil prices surged amid the escalating conflict involving Iran, the United States, and Israel. Benchmark Brent Crude prices jumped close to $120 per barrel, reaching nearly a four-year high and raising concerns about the near-term profitability of Indian oil marketing companies that rely heavily on crude imports.
Stocks of major state-run refiners dropped significantly, with Indian Oil Corporation falling 6.6%, Hindustan Petroleum Corporation Limited sliding 7.5%, and Bharat Petroleum Corporation Limited declining 7.1%. Meanwhile, energy giant Reliance Industries slipped about 2%. Analysts noted that these companies are vulnerable to rising crude costs because they sell more fuel than they produce, leaving their earnings exposed during price spikes.
The broader energy sector also weakened, dragging down market indices including the Nifty Oil & Gas Index and the Nifty 50. Analysts warned that further escalation could disrupt supplies through the Strait of Hormuz or impact LNG exports from Qatar, both crucial sources of energy imports for India. Such disruptions could tighten global energy markets and trigger further price spikes.
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