BPCL, IOC, HPCL Rally as Crude Oil Falls Below $78; ONGC, Oil India Slip on Iran Deal Hopes

Indian oil and gas stocks traded in a mixed manner on Wednesday, with oil marketing companies (OMCs) outperforming their upstream peers as crude oil prices fell below $80 per barrel for the first time since March 2026.

As per Trading Economics, crude oil was trading at $76.237 per barrel up by 0.25% at the time of writing. While Brent crude fell toward $78 per barrel at the same time.

Oil & Gas Stock Performance

BPCL led the gains, rising about 2.1% to Rs. 318.40, while Indian Oil Corporation (IOC) advanced 0.7% to around Rs. 146 and Hindustan Petroleum Corporation (HPCL) added 0.6% to Rs. 403.90. Among gas distribution companies, Mahanagar Gas, Petronet LNG, and Indraprastha Gas also traded higher.

However, upstream producers ONGC and Oil India slipped into the red, while Gujarat State Petronet (GSPL) was the biggest loser in the energy pack, falling nearly 7%. Reliance Industries edged up around 0.1% during the session.

Overall, the energy sector stayed mixed, with 17 stocks advancing against 11 decliners.

Why Are OMC Stocks Rising?

The rally in oil marketing companies is because of a decline in global crude oil prices which fell below $80 per barrel after the United States and Iran are moving closer to signing an interim peace agreement. The proposed deal, expected to be signed in Switzerland on Friday June 19, could restore oil flows through the Persian Gulf, easing supply concerns and pushing crude prices lower.

For companies such as BPCL, IOC, and HPCL, lower crude prices are generally positive because they reduce the cost of raw materials used to produce petrol, diesel and LPG. This can improve refining and marketing margins, particularly if retail fuel prices remain unchanged.

ONGC and Oil India Under Pressure

While falling crude prices help refiners, they have the opposite effect on upstream oil producers. Companies such as ONGC and Oil India generate a huge portion of their revenue from crude oil production.

A decline in international crude prices reduces the amount they earn for every barrel of oil sold, putting pressure on future earnings and investor sentiment.

Reliance Sees Limited Impact

Reliance Industries, which has both refining and petrochemical businesses, traded largely flat. At around 2 PM Reliance shares were trading at Rs. 1,329.60, up by 0.060%.

Market Outlook Ahead

"The prospect of additional Iranian oil returning to global markets, alongside the anticipated reopening of the Strait of Hormuz, intensified concerns over a potential supply surge and weighed heavily on sentiment. Today, oil prices stabilised as traders reassessed the implications of the agreement and awaited further details. The MOU has yet to be released publicly, raising questions about implementation and timing. The framework reportedly includes the release of $25 billion in frozen Iranian assets, mine-clearance operations before full Hormuz transit resumes, and a 60-day window for nuclear negotiations." as per Kotak Commodity Research Report.

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