Indian Oil, HPCL, BPCL shares rise as brent crude prices fall for fourth day 

Brent crude oil prices slipped for the fourth straight day on Monday as investors were positive on the growing oil flow via the Strait of Hormuz and hopes of diplomatic progress on the US-Iran war in the United Nations General Assembly this week. Key issues such as Russia-Ukraine war, AI and the West Asia war might be discussed in high-level meetings of the 15-member UN Security Council this week.

The fall in brent crude oil prices (4%) during the last four days led to a rally in the shares of oil marketing companies (OMCs) such as Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL).

BPCL shares gained 3% in four days to Rs 315.75 today against the close of Rs 306.80 on September 17, 2026.  Indian Oil stock too rose 2.68% to Rs 137.70 during the period. It closed at Rs 134.10 on September 17.

Shares of HPCL, another state owned OMC, gained 2.5% in the last four days. They rose to a high of Rs 359.55 in the current session against the close of Rs 350.45 on September 17.

The three OMCs are downstream companies, which buy crude oil from upstream producers and refine it into petrol, diesel, aviation fuel, LPG, lubricants and other products. OMCs then distribute these through retail outlets. The lower the price of crude oil, the higher are their profit margins.

The margin or profit is the spread between the crude they buy and the refined products they sell. When crude prices fall without a corresponding decrease in retail pump prices, that spread rises. On the contrary, when crude prices rise without a corresponding rise in retail pump prices, their spread or profit margins fall.

High oil prices impact 

The three state-run OMCs logged an accumulated loss of Rs 74,781 crore in the April-June quarter, according to official data from the oil ministry. The brent crude oil prices remained on the higher level since the West Asia war broke out.