Commodities● Neutral
Oil at $92 Pressures Indian Stocks After US-Iran Escalation
Brent crude jumped to $92 a barrel, the highest in five weeks, after fresh US-Iran attacks. Indian shares open lower. OMCs and airlines face margin pressure, while ONGC benefits. FPIs bought ₹1,650 crore.
Continue with
Indian shares were set to open lower Wednesday. Brent crude jumped to $92 a barrel, the highest in more than five weeks, after the US-Iran conflict escalated with fresh attacks and a threatened naval blockade of Saudi Arabia by Yemen's Houthis.
Two oil tankers carrying Saudi crude to Asia reversed course in the Red Sea on Tuesday. A third tanker was hit in the Strait of Hormuz at the mouth of the Gulf.
GIFT Nifty futures traded at 24,117 as of 7:56 a.m. IST, signaling the benchmark Nifty 50 could open below Tuesday's close of 24,187.7. Brent crude rose about 1.2% to $92 per barrel.
Higher oil prices hurt India, the world's third-largest crude importer. They lift inflation and widen the trade deficit. Oil marketing companies such as Indian Oil and Bharat Petroleum face margin compression when global prices rise faster than domestic retail prices. Airlines, including InterGlobe Aviation, also face higher fuel costs. Upstream producers like ONGC stand to benefit from higher realizations on crude sales.