Crude Surges Above $100 a Barrel: Sectors Linked to Oil Face Significant Earnings Risks

Oil prices have surged above $100 a barrel, causing widespread disruption to global energy supplies. Brent crude prices are now trading at around $108 per barrel, up over 30% from levels seen in early July.

The recent surge in crude is putting pressure on various sectors linked to oil, including oil marketing companies, airlines, tyre makers, paint manufacturers, and some chemical companies. These companies face squeezed margins due to higher fuel and raw-material costs.

HPCL, one of India's largest oil marketing companies, faces the biggest earnings risk among OMCs. The company has a relatively smaller balance sheet and lower diversification compared to IOC and BPCL.