OMCs under pressure as Trump dumps Iran nuclear deal; HPCL falls 5%

Shares of oil marketing companies (OMCs) were under pressure falling by up to 5% on the BSE in early morning trade as crude oil prices jumped back to near 3 1/2-year highs on Wednesday.
OMCs like Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) were down between 3% and 5%, while Chennai Petroleum Corporation (CPCL) and Mangalore Refinery & Petroleum were down 1% to 3% on the BSE. On comparison, the S&P BSE Sensex was trading 0.04% lower at 35,200 points at 09:32 am.

U.S. West Texas Intermediate (WTI) crude futures traded at $70.24 per barrel, up 1.7% and near Monday's high of $70.84, which was its highest level since November 2014 after U.S. President Donald Trump pulled his country out of an international nuclear deal with Iran, sparking worries about global oil supplies, the Reuters report suggests.

Meanwhile, oil exploration & production companies like Oil India, Oil and Natural Gas Corporation (ONGC), Aban Offshore, Selan Exploration Technology, Deep Industries and Jindal Drilling & Industries were up in the range of 1% to 3% on the BSE.