Shares of oil marketing companies declined on Thursday on the stock exchange, following a surge in global crude prices and reports that refiners are re-examining their Russian oil supply contracts in the wake of fresh US sanctions.
In the intra-day trade (1:40 PM, IST), shares of Hindustan Petroleum Corporation Ltd (HPCL) were down 2.92 per cent, while Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation Ltd (IOC) slipped 1.65 per cent and 2.3 per cent, respectively. Mangalore Refinery and Petrochemicals Ltd (MRPL) fell around 3.29 per cent.
US sanctions prompt review of Russian oil trade
According to a Reuters report, state-run refiners are reviewing trade documents for Russian crude cargoes to ensure that no supply originates directly from Rosneft Oil Company or Lukoil Oil Company — two entities targeted under new US sanctions.
The move follows President Donald Trump’s decision on October 22 to impose Ukraine-related sanctions on Russia for the first time in his second term, aimed at tightening pressure on President Vladimir Putin.
The US Treasury has allowed companies until November 21 to wind down their transactions with Rosneft and Lukoil.
India has become the biggest buyer of discounted Russian crude following Moscow’s 2022 invasion of Ukraine, importing about 1.7 million barrels per day in the first nine months of this year.
