Prices of oil refinery and marketing companies' shares tumbled in the market today, with the sharp jump in global crude oil prices triggering heavy selling at these counters.
BPCL tumbled by about 8% and Hindustan Petroleum Corporation shed 7.4%, while Indian Oil Corporation declined 6.1%.
While volume of business at BPCL counter on BSE stayed around the average daily volume, IOC and HPCL counters saw a significant jump in volumes today.
GAIL India lost about 5.6%, Indraprastha Gas ended 4% down and Petronet LNG lost nearly 3%, while Oil India ended lower by 2.6%. Among other stocks in the BSE Oil & Gas index, heavyweights Reliance Industries and ONGC lost 1.3% and 1.2%, respectively. Castrol India declined marginally.
Shares of airliners are down as well due to the impact of higher crude oil prices. SpiceJet ended lower by 3.6% and Indigo declined 2.2%, while Jet Airways declined 5.8%. Jet Airways announced an offer of discounts up to 30% for international bookings till June 30.
Crude oil futures for August delivery rose to $71.17 a barrel on the New York Mercantile Exchange and Brent oil futures for September climbed to $76.73 a barrel in London.
Crude oil prices rose following reports about a supply disruption in Canada and on US urging all countries to stop importing Iranian from November.
Another trigger for the sell-off at oil stocks counters is the report that the Libyan army has handed contol of oil installations to a separate National Oil Corporation based in Eastern part of the country and the official state owned oil company will not be allowed to handle oil anymore. This could result in severe disruption in crude oil supply.
According to data released by the American Petroleum Institute, U.S. crude inventories declined to 421.4 million barrels in the week to June 22, a drop of 9.2 million barrels from a week earlier.