BPCL, HPCL, IOC Shares Fall Up to 3% as Crude Oil Rises Above $70 per Barrel
- 19th February 2026
- 03:40 PM
- 3 min read
Summary
Shares of oil marketing companies (OMCs) including BPCL, HPCL and IOC fell up to 3% after global crude oil prices surged past $70 per barrel. Rising geopolitical tensions and supply concerns lifted oil prices, raising worries over marketing margins and earnings for downstream refiners.Mumbai | February 19
Shares of state-run oil marketing companies (OMCs) came under pressure on Thursday after a sharp rebound in global crude oil prices dented investor sentiment.
Bharat Petroleum Corporation Ltd (BPCL) fell as much as 3% to ₹370.80, Hindustan Petroleum Corporation Ltd (HPCL) dropped 2.8% to ₹444.40, and Indian Oil Corporation Ltd (IOC) slipped nearly 2% to ₹175.24 during intraday trade.
The decline followed a strong surge in global crude benchmarks, which revived concerns about margin pressure for downstream refiners.
Geopolitical tensions lift crude oil prices
Brent crude futures climbed over 4% to move above the $70 per barrel mark, while US WTI crude rose more than 4% to trade near $65 per barrel. The rally marked the highest settlement levels since late October.
Traders reacted to escalating geopolitical tensions in the Middle East and Eastern Europe. Concerns over a potential US–Iran confrontation, uncertainty around nuclear negotiations, and the possibility of supply disruptions in the Strait of Hormuz supported crude prices.
The Strait of Hormuz remains one of the world’s most critical oil transit routes, handling a significant share of global energy exports.
Additional support for oil prices came from a reported drawdown in US crude inventories and stronger US macroeconomic data, including a rise in industrial production.
So far in 2026, crude prices have risen over 10%, reversing declines seen over the previous three years.
Supply outlook remains mixed
Despite the near-term surge, longer-term supply projections remain uncertain.
OPEC is expected to resume production hikes in the coming months, while global agencies have projected a potential supply surplus next year. Some brokerages expect average crude prices to moderate toward the $60–$68 range over the medium term.
However, continued geopolitical uncertainty has increased short-term volatility in oil markets.
Higher crude prices hurt OMC stocks
For oil marketing companies such as BPCL, HPCL and IOC, crude oil accounts for the bulk of input costs.
When crude prices rise sharply, refiners face higher procurement costs. If petrol and diesel retail prices do not adjust proportionately, marketing margins shrink, which can weigh on profitability.
Higher crude prices also increase working capital requirements and elevate the risk of inventory losses if product realisations fail to match input costs.
Reports suggest India may reduce purchases of discounted Russian crude, which has supported refining margins in recent quarters. Any shift away from discounted imports could further tighten marketing spreads for OMCs.
The market often reacts quickly to crude price spikes because OMC earnings remain sensitive to both refining margins and government pricing policies.
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