OMCs dip as US withdraws from Iran nuclear agreement

As crude oil trades at around US$75 per barrel, Indian oil marketing companies (OMCs) dipped in the early morning trade on Wednesday. The US Trump administration has announced its withdrawal from the nuclear trade struck by the previous US government and Iran.

Among OMCs, the stock of HPCL was trading at Rs. 296.20 per share, down by 3.50 per cent, BPCL was at Rs. 380.00 per share, down by 3.26 per cent, IOC was at Rs. 162.60 per share, down by 2.40 per cent, while oil refining major Reliance was at Rs. 965.00 per share, down by 0.27 per cent at 9:37 hours on Wednesday. The BSE Oil & Gas index was at 14,406.69 per share, down 118.50 points or 0.82 per cent. 

US president Donald Trump on Tuesday said that he plans to reimpose sanctions on Iran on the behest that the country continues to supports terror operatives and the nuclear deal does not curb Iran's nuclear weapon and ballistic missile program. On the other hand, Iranian President Hassan Rouhani said that his country is trying to negotiate with other world powers to keep the nuclear deal alive.

Due to the uncertainties introduced by this development, crude oil price in the international market hit three and half year high. Brent crude oil futures hit $76.75 per barrel in Asian trade on Wednesday.