Oil at new high, petroleum stocks dip

In international markets, the Brent crude was trading at US$62.50 per barrel at pre-lunch hours on Tuesday after hitting a two-year high on Monday. The Brent crude futures were trading at US$64.22  per barrel.

This uptick in crude oil prices was on the back of political changes in Saudi Arabia, which is a major oil producer. Saudi Arabia's Crown Prince Mohammed bin Salman has started consolidating his powers and has launched an anti-corruption drive in his kingdom, giving rise to uncertainties.
 
Meanwhile, in the domestic market, petroleum stock were trading mixed. Hindustan Petroleum was trading at Rs. 445.00 per share, up by 2.40%, Oil India was at Rs. 374.70, up 1.09%, Petronet was at Rs. 261.55, up 0.21%. While GAIL was trading at Rs. 461.40, down by 1.01%, BPCL was at Rs. 521.55, down by 0.61%, IGL was at Rs. 1,545.00, down by 0.94%, ONGC was at Rs. 195.35, down 1.66%,  IOC was at Rs. 400.40, down 2.45%.

An increase in the crude oil prices impact the revenues of petroleum companies as it increases their raw material cost in terms of crude derivatives, but for companies who have fixed their input cost through long-term agreements, it may also lead to increase in margins.