Crude-Linked Stocks Soar Amid Oil Price Drop
Crude oil-linked stocks rose up to 3% on Wednesday in intraday trade on the BSE, despite a decline in crude oil prices. Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), and GAIL shares climbed significantly.
The decline in oil prices is typically negative for upstream exploration and production companies, as their revenues and realisations decrease. However, a drop in oil prices tends to benefit oil marketing stocks, boosting their marketing margins on petrol and diesel retail sales.
According to InCred Capital Wealth, oil prices will get rebalanced before gas. The financial services company forecasts Brent at $88 per barrel in 2026, $76 per barrel in 2027, and $72 per barrel in 2028. This is above the pre-war $65 per barrel level due to Iran's lost reservoir capacity.
The Strait of Hormuz's fate will determine Brent crude prices. InCred Capital Wealth estimates an average price of $101 per barrel in Q4 2026 if the blockade lasts, $80 per barrel if a deal is reached by December 2026, and $89 per barrel with an Oman-led corridor operating.