Crude Prices Near $100: Which Indian Stocks Are Most Exposed?

Brent crude prices have declined to approach $104 per barrel following reports that Saudi Arabia will resume operations of almost half of the East-West pipeline's capacity over several days and fully return the pipeline to operations over six weeks.

The pipeline, which offers an alternative way to move oil aside from the Strait of Hormuz, was damaged in drone strikes last week. US Energy Secretary Chris Wright noted that 18 million barrels of crude and refined products were transported through Hormuz earlier in the week.

Indian sectors and stocks could face margin pressure if crude oil prices remain elevated for a prolonged period. Oil marketing companies HPCL, IOC, and BPCL are among those most directly exposed to sustained high crude prices. Higher crude increases the cost of purchasing and processing oil, while their profitability depends on refining margins and the prices at which petrol, diesel, and LPG can be sold.

These companies could face significant pressure if retail fuel prices do not rise in line with crude, leading to marketing margin losses. InterGlobe Aviation and SpiceJet may also face higher operating expenses due to aviation turbine fuel (ATF) costs linked to crude and petroleum products.