Crude Oil Price Surge Sends OMCs, Paints, Aviation, Tyre Shares Plummeting
The global crude oil price surge has put pressure on various sectors, causing shares of Oil Marketing Companies (OMCs), paint manufacturers, aviation companies, and tyre makers to decline. The Brent crude futures price rose above $95 per barrel on September 2, marking a nearly 1% increase.
This sharp rise in prices is attributed to escalating geopolitical tensions in the Middle East, particularly around the Strait of Hormuz, which is a key shipping route for global crude supply. Military strikes and retaliatory actions between the US and Iran have raised concerns about potential disruptions to energy flows and tightening global supply.
The Nifty Oil and Gas Index fell 1.04% to trade at an early low of 11,025.6 points. Shares of OMCs such as Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Indian Oil Corporation declined by 1.74%, 1.95%, and 1.59%, respectively.
Airlines like InterGlobe Aviation saw a nearly 3% drop in early trading due to the increased cost of Aviation Turbine Fuel. Tyre manufacturers Apollo Tyres, MRF, CEAT, and JK Tyre fell between 1% and 2%. Paint manufacturers Asian Paints, Berger Paints, and Kansai Nerolac declined by over 2%, 2%, and 1%, respectively.