Shares of oil marketers surged in intra-day trade on Thursday by up to 6% as there was seen a declining trend in global crude prices on a sudden spurt in US crude inventory. Also, as per reports Saudi Arabia has managed to restore its production after the drone attack on its facilities at a faster pace than expected, which has also lifted sentiment.
As against the analysts forecasts of a decline in crude stockpile by 2,49,000 barrel, there was seen a surprise surge in US crude by as much as 2.4 million barrels last week reported the Energy Information Administration.
There has also been a brokerage upgrade on OMC stocks. While HPCL and IOC have been upgraded to 'buy', a 'neutral' rating is given to BPCL. The brokerage holds the view that crude prices will remain range-bound in the medium term and there is expected to be a higher refining margin for these companies' going ahead.
At the same time, another global major Morgan Stanley sounds bullish on oil-marketing companies. It said that companies remained determined in maintaining margins despite sharp rise in fuel prices post the terror strike in Saudi Arabia. Also, it said the waiver or discount extended on fuel purchase via credit card has now been done away with.
Among the oil marketing companies, HPCL remains their top pick.
HPCL, IOC in intra-day trade surged to a high of Rs. 304.6 and Rs. 149.45, logging as much as 6% gains. BPCL made an high of Rs. 482.05 on the NSE, rising 3.63%.