HPCL, Petronet LNG, BPCL, IOC, GAIL: Oil & gas stocks tumble up to 7% on West Asia crisis

Shares of oil & gas companies took a hit, falling up to 7 per cent in Thursday's trade, as West Asia crisis intensified with missile attacks oil infrastructure in Iran, Qatar and Saudi Arabia. 

Among oil marketing companies (OMCs), Hindustan Petroleum Corporation Ltd fell 6.75 per cent to hit a low of Rs 325.70. Bharat Petroleum Corporation Ltd (BPCL) fell 4.23 per cent to Rs 290.85. Indian Oil Corporation Ltd (IOC) was down 2.09 per cent at Rs 145.40.  "Oil marketing companies (OMC) will likely lose much more on petrol and diesel retailing than the incremental benefit accrued on refining," Nomura said on Thursday. 

City gas distributors were mixed. Indraprastha Gas Ltd (IGL) declined 1.11 per cent to Rs 155.60. Gujarat Gas Ltd fell 0.45 per cent to Rs 357.45. Mahanagar Gas Ltd was up 0.72 per cent at Rs 1,008.05.  

Petronet LNG Ltd dropped 3.98 per cent to Rs 279.70. Gail (India) Ltd slipped 2.19 per cent to Rs 147.70. Oil India Ltd was up 1.46 per cent at Rs 476.90. Refiner ONGC gained 2.23 per cent to Rs 270.75. Reliance Industries Ltd stood at Rs 1,412.85, up 0.31 per cent. 

QatarEnergy said an Iranian attack on its Ras Laffan Industrial City caused extensive damage to the Pearl GTL, the world's largest gas-to-liquids plant. This came after Israel attacked Iran’s South Pars gas field. 

VK Vijayakumar, Chief Investment Strategist at Geojit Investments said the uncertainty surrounding the war has turned worse with Israel hitting the world’s largest LNG refinery in Iran. "Brent crude has shot up to $111. This is bad news for oil and gas importers like India," it said.

 According to S&P Global Platts, Dubai spot crude assessments for May-loading cargoes hit a record $157.66 per barrel, surpassing the previous all-time high of $147.5 per barrel set by Brent crude oil futures in 2008, Choice Broking noted, It said Oman crude futures hit a recor high of $152.58.

"The rise in Dubai and Oman crude prices reflect the scarcity premium. Despite a physical disruption of 7–11 mb/d, the current Brent prices are not yet baking in precautionary demand or hoarding. If the Hormuz situation remains status quo without progress in US–Israel–Iran negotiations, declining floating inventories and tightening marginal storage could drive a sharp increase in oil prices. This could push Brent towards $130 per barrel over the coming weeks," Choice Institutional Equities said.