MRPL, Chennai Petro soar up to 8% as crude oil prices rebound

MRPL, Chennai Petroleum and Hindustan Oil Exploration soared around 8 per cent each. Oil explorers - Oil India and ONGC also logged smart gains in an otherwise weak market.

Shares of oil refiners logged strong gains, rallying around 8 per cent, in an otherwise weak market on the back of a rebound in crude oil prices. Meanwhile, the S&P BSE Sensex was down 0.6 per cent at 52,840.

Crude Oil prices headed north, after French President Emmanuel Macron said on Monday the president of the United Arab Emirates, Sheikh Mohammed bin Zayed al-Nahyan (MbZ), had told him two top OPEC oil producers, Saudi Arabia and the United Arab Emirates, can barely increase oil production. READ MORE

As of 10:15 AM IST, In the commodities market, Brent crude quoted at $112.38 a per barrel, up 1.3 per cent. US WTI Crude futures were up 1.2 per cent at $110.87. Brent futures, although, off from the 2022 highs of $139.13 a barrel, were still up a solid 44.3 per cent on a YTD basis.

Among refinery related stocks, MRPL zoomed over 8 per cent to Rs 89. Chennai Petroleum and Hindustan Oil Exploration surged 7.7 per cent each to Rs 322 and Rs 192, respectively. Among oil explorers, Oil India gained 3.7 per cent at Rs 242.50 and ONGC added 2 per cent to Rs 144.

Shares of Reliance Industries, the largest private refiner, too advanced a per cent to Rs 2,516.

According to analysts, companies across the value chain, especially crude refiners, have seen material gains in tandem with record-high prices of crude oil.

Higher crude oil prices boost oil explorers' average realisation from every barrel of the oil sold. The rise in the Singapore gross refining margin (GRM) to a record high of $25.2 a barrel bodes well for Indian refiners as they process raw crude into refined products.

On the other hand, select sectors such as aviation and paints have an adverse impact of an rise in crude oil prices, due to rise in input costs. As such, Asian Paints has tanked nearly 4 per cent to Rs 2,711 in trades so far on Tuesday. InterGlobe Aviation was down 1.7 per cent at Rs 1,599.