Oil Prices Jump Over 4%: ONGC, Oil India Rally While IOC, BPCL, HPCL Shares Slip
Oil prices today, ONGC share price, IOCL stock performance, BPCL share update, HPCL news, Oil India rally, crude oil news, Middle East tensions, energy stocks in India.
Oil prices surged over 4% globally, leading to a sharp movement in shares of oil-related companies on June 12, 2025. This dramatic spike in crude oil prices has had a mixed impact on different segments of the energy sector, with upstream oil producers witnessing gains, while downstream oil marketing companies (OMCs) experienced selling pressure.
📊 Crude Oil Prices at 2-Month High
Brent crude futures surged by $2.90 (4.34%) to $69.77 per barrel, and the U.S. West Texas Intermediate (WTI) crude jumped by $3.17 (4.88%) to $68.15 per barrel. Both benchmarks reached their highest levels since early April.
This spike was largely triggered by escalating geopolitical tensions in the Middle East. US President Donald Trump recently stated that “the Middle East could be a dangerous place,” referencing a military repositioning and raising alarms about the possibility of supply disruptions due to heightened tensions with Iran.
According to Reuters, the U.S. is reportedly preparing a partial evacuation of its embassy in Iraq and allowing dependents to leave military bases across the Middle East. Such developments have fueled market fears and led to speculative buying in the oil markets.
📈 Winners: Oil Producers ONGC and Oil India
A sharp rise in oil prices is typically beneficial for upstream companies — those involved in the exploration and production of crude oil.
- ONGC shares jumped 2.66% to ₹253.80 apiece on the NSE.
- Oil India surged over 4.6% to trade at ₹486.95.
These companies directly benefit from higher crude prices, as it increases their revenue per barrel of oil produced. The market sentiment around these stocks remained positive in early Thursday trading, attracting investor interest due to higher profitability expectations.
📉 Losers: Oil Marketing Companies Under Pressure
While upstream players gained, downstream OMCs such as IOCL, BPCL, and HPCL saw sharp declines. Rising crude oil prices usually hurt these companies, as they either face margin pressure or may not be able to fully pass on the cost to consumers due to government regulations.
- Indian Oil Corporation (IOCL) shares dropped 1.56% to ₹142.70.
- BPCL shares fell nearly 2%.
- HPCL was down 2.77% to ₹403.15.
This decline reflects concerns around marketing margins and potential inventory losses if prices remain volatile or continue to rise. Retail investors may need to be cautious with OMC stocks in the short term unless price controls are relaxed or crude prices stabilize.
🎨 Paint and Tyre Stocks React to Crude Volatility
The impact of crude prices is not limited to oil and gas companies. Other sectors like paints, tyres, and aviation also felt the heat:
Paint Stocks:
- Asian Paints traded in green, marginally positive.
- Indigo Paints was down 0.55% at ₹1,122.50.
- Berger Paints dipped 0.65% to ₹563.50.
Paint manufacturers use petroleum-based raw materials. Rising oil prices increase input costs, which can hurt operating margins if companies are unable to pass on the additional cost to consumers.
Tyre Stocks:
- MRF declined 0.7% to ₹1,35,830.
- JK Tyre was down 0.3% to ₹379.80.
- CEAT dropped 0.11% to ₹3,845.
Tyre companies are also vulnerable to oil price swings as they use synthetic rubber and other oil-based compounds in manufacturing.
Aviation Stocks:
- IndiGo (InterGlobe Aviation) shares fell 1.52% to ₹5,546.
- SpiceJet gained 2.20% to ₹46.49.
Aviation companies are directly impacted by jet fuel prices, which rise alongside crude oil. This typically increases operating costs and lowers profit margins, making airline stocks sensitive to oil price volatility.
💡 Expert Opinion: What Should Investors Do?
The oil price surge has created a clear divergence in the energy and related sectors. While upstream oil producers like ONGC and Oil India benefit from rising prices, downstream players such as IOCL, BPCL, and HPCL are likely to face margin pressure.
Investors should consider the following:
- Keep an eye on geopolitical tensions in the Middle East — any escalation could drive oil prices even higher.
- Upstream oil stocks may offer short-term gains with improving fundamentals.
- OMC stocks may remain under pressure unless oil prices stabilize or government subsidies increase.
- Paint, tyre, and airline sectors may continue to face input cost inflation if crude remains elevated.
📌 Final Thoughts
The sharp surge in oil prices has reshaped market dynamics for the day. With ONGC and Oil India rallying and OMCs like IOCL, BPCL, HPCL declining, the energy sector is clearly divided between winners and losers.
As crude continues to stay volatile due to international developments, traders and investors should stay alert and follow sector-specific cues closely before making portfolio decisions.
Disclaimer: This blog is for informational purposes only and not investment advice. Please consult a financial advisor before making investment decisions.
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