Crude Price Surges to $107, Triggering Declines in Oil-Dependent Stocks

Oil Prices Remain Elevated, Pressuring Stocks Across Sectors

Brent crude held firmly above the $100 mark, briefly breaching $107 per barrel, leading to a decline in crude-sensitive stocks on Tuesday. Energy and transport-linked counters were under strain as a result.

State-run oil marketing companies saw their shares decline, with Hindustan Petroleum Corporation Ltd falling 2.08% to Rs 369.95, down Rs 7.85. Bharat Petroleum Corporation Ltd slipped 2.26% to Rs 287.80, losing Rs 6.65, while Indian Oil Corporation Ltd dropped 2.00% to Rs 137.56, down Rs 2.81.

Aviation stocks also came under pressure as expectations of higher jet fuel costs weighed on the sector. InterGlobe Aviation, parent company of IndiGo, declined 2.35% to Rs 4,198.50, down Rs 100.90, while SpiceJet fell sharply 4.95% to Rs 12.67.

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Paint stocks, which are sensitive to crude-linked input costs, traded weakly. Asian Paints slipped 2.47% to Rs 2,502.60, down Rs 63.50, while Berger Paints India fell 1.12% to Rs 488.30, down Rs 5.55.

Global oil prices are expected to remain in the "low $100s" for much of the year, even if the Strait of Hormuz reopens as early as next month, according to investment bank JP Morgan. The bank noted that oil supplies from the region are unlikely to return to normal quickly, suggesting persistent disruptions to global energy flows.

This outlook came amid a rise in crude prices following comments from US President Donald Trump, who said Iran's response to US proposals to end the conflict was "totally unacceptable". Brent crude had surged over 4% intraday to around $105.94 per barrel before easing slightly, as tensions in West Asia continued to drive volatility in global oil markets.

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