Crude Oil Prices Plummet to Pre-Iran War Levels

Crude Oil Prices Hit New Lows

On Thursday, crude oil prices dropped to levels not seen since before the Iran conflict, reaching approximately $72 per barrel in global markets. The Brent crude benchmark has lost all the gains it achieved during the war, primarily due to the disruption of supplies through the Strait of Hormuz. Brent crude saw a decline of over 1.52%, settling at around $72.4 per barrel, while the US benchmark, West Texas Intermediate (WTI), fell by 1.43% to about $69.3 per barrel. Over the past month, crude oil prices have experienced a notable decrease, plummeting by more than 22%.

Beneficiaries of Falling Oil Prices

Oil Marketing Companies and Airlines Reap Rewards

The decline in crude oil prices has significantly benefited oil marketing companies (OMCs) and the airline industry. In early trading, shares of crude-sensitive companies showed positive movement. Bharat Petroleum Corporation (BPCL) saw a 1% increase, Hindustan Petroleum Corporation (HPCL) rose by 0.9%, and Indian Oil Corporation (IOC) edged up by 0.1%. Additionally, InterGlobe Aviation, which operates IndiGo, experienced a notable surge of 4.49%, driven by expectations of reduced aviation fuel costs. The decrease in crude prices is also likely to lower input costs for industries reliant on crude, such as paint manufacturing, keeping companies like Asian Paints and Berger Paints (India) on the radar of investors.