After testing levels of $81 per barrel on Monday, Brent crude prices have tanked over 15% falling to levels below $70 per barrel.
A fall in crude oil prices is generally negative for upstream oil companies like ONGC and Oil India, while on the flip side, it is positive for downstream refining companies like HPCL, BPCL and Indian Oil.
Every $1 per barrel fall in crude oil prices hits ONGC’s annual revenue between ₹300 crore and ₹400 crore.
On the other hand, a $1 per barrel fall in crude prices can improve the earnings before interest, tax, depreciation and amortisation (EBITDA) by ₹200 crore to ₹300 crore.
A fall in crude oil prices is also beneficial for paint companies as up to 50% of their input cost is linked to crude oil and a fall in these prices reduces their raw material costs and leads to better margins.
Shares of HPCL are trading 4% higher, while those of BPCL and Indian Oil are trading with gains of 3% each.
However, shares of ONGC are trading 2% lower, while those of Oil India declining as much as 4%.
First Published: Jun 24, 2025 10:21 AM IST
