Shares of oil marketing companies (OMCs) are likely to be on investors' radar when the Indian stock market resumes regular trading on Wednesday, November 11, as international crude oil prices have fallen to a three-month low amid diplomatic efforts to end the Middle East conflict.
Brent crude fell towards $90 per barrel on Tuesday, extending losses from the previous session and touching its lowest level since late August. The decline came after US President Donald Trump played down the prospect of additional military action against Iran, easing fears of prolonged supply disruptions in the Middle East. The possibility of a global supply glut also remained in focus.
Traders are assessing whether a potential breakthrough in peace negotiations between the US and Iran could ease supply-chain disruptions that have persisted since the conflict began. The crisis had pushed inflation in developing economies to multi-year highs and prompted central banks to raise interest rates.
The three state-run OMCs — Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation Ltd (IOC) — have started November on a strong note, gaining between 10% and 13.5% so far, supported by the sharp retreat in crude oil prices.
Trump said on Monday that he planned to hold off on further military strikes against Iran following appeals from countries in the region, including Qatar's prime minister. However, market participants remained cautious about the announcement, given that Trump had made similar statements in the past before military action resumed.