In Wednesday's trading session, shares of oil-marketing companies including Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) declined as the price of crude oil surged more than 1% to nearly $63/ barrel in the last session.
Brent crude futures also increased 1.5% or 91 cents and settled at $62.42 per barrel in the last session. US WTI crude oil futures surged 1.3% or 69 cents, closing at $53.10 per barrel.
As per the Reuters report, surge in crude oil price came as a result of OPEC data that highlighted a massive cut in production in January month. Also Saudi Arabia, a leading member, said it would bring down its output by another 500,000 barrels in March.
Indian Oil fell 1.30% and was last trading at Rs. 132.75, while HPCL and BPCL cracked 2.61% and 2.58% respectively. The shares of HPCL were priced Rs. 227.5 and BPCL last quoted at Rs. 330.40 per share.
Also, the US sanctions on Iran and Venezuela are creating further pressure on the markets as per analysts.