Oil prices cross $114 as attacks on Saudi Arabia push Indian fuel shares down

Indian oil marketing company shares faced heavy selling pressure on Friday morning as global crude oil prices surged past $114 per barrel following recent attacks in the Middle East. BPCL shares opened lower at 286 rupees on the National Stock Exchange and dropped about two percent to 281.80 rupees. IOCL shares fell over two and a half percent, while HPCL shares dropped over two percent shortly after the opening bell. Market experts said the stock decline is driven by three main factors: soaring crude oil prices due to fresh Middle East tensions, domestic fuel prices not rising in step with international crude rates, and a weak Indian Rupee. These combined pressures threaten to strain company balance sheets. Brent crude headed for a third weekly gain, moving toward 114 dollars a barrel, while West Texas Intermediate crossed 100 dollars. Iran-backed Houthi militants claimed recent strikes on a Saudi Red Sea port, an oil field, and an airport, raising fears of supply disruptions near the Strait of Hormuz. US President Donald Trump stated on Thursday that the United States has knocked out Iran and warned of further action. Experts advised shareholders against panic selling, noting that the current market drop stems from short-term sentiment that could reverse when regional tensions ease.

Context

Global crude oil price spikes directly impact fuel retailers in India because the country imports a vast majority of its oil needs. When international crude costs jump faster than domestic retail fuel prices adjust, marketing companies absorb the financial difference, which weighs heavily on their stock valuations during geopolitical crises.