OMC Stocks Rally On US-Iran Ceasefire: IOC, BPCL, HPCL Surge Upto 10% As Crude Oil Crashes 15%

Shares of state-run oil marketing companies (OMCs) picked a sharp rally on Wednesday, April 8, surging upto 10% intraday after global crude oil price crashed 15% on the 15-day US-Iran ceasefire deal.

Hindustan Petroleum Corporation (HPCL) led the surge, rising over 10%, followed by Bharat Petroleum Corporation (BPCL), which rose more than 8%, and Indian Oil Corporation (IOC), up over 7%.

The rally tracked a sharp crash in global oil prices, with Brent crude due for May delivery pluging 6% at $103 per barrel.

The West Texas Intermediate (WTI), which correlates more with the US economy and markets, took the higher crash, with deep cuts of almost 15% to trade at $96 per barrel.

Oil prices slumped following US President Donald Trump's announcement of a two-week temporary 'double-ceasefire' deal, just hours after he threatened to end the Iran civilisation.

Mediated by the Pakistani government, Trump confirmed that he ordered US troops to call off the ongoing military strikes in the Gulf nation.

This comes after a sustained period of volatility in global oil markets, owing to continued unrest in the Middle East and the closure of the Strait of Hormuz, a key route that handles one-fifth of global oil supply.

Iran's foreign minister Seyed Abbas Araghchi had also confirmed that safe passage through the Strait of Hormuz during the two weeks may be possible, provided the US halts all attacks on Iran.