Crude oil prices experienced a dramatic decline on Monday, with Brent crude futures falling 5.7% to $97.69 per barrel and US West Texas Intermediate dropping 6% to $90.85 per barrel. Both contracts touched their lowest levels since May 7 during the session. In the domestic market, MCX crude oil for June futures opened 4% lower at ₹8,802 per barrel against the previous close of ₹9,168, with prices dropping as much as 5.95% to a low of ₹8,622 per barrel. As per Livemint, the decline came amid growing optimism that the United States and Iran were moving closer to a peace deal, though both countries remain at odds over key issues.
Among oil marketing companies, Hindustan Petroleum Corporation rose 4.5% to ₹407.25, Bharat Petroleum Corporation gained 3.7% to ₹306.45, and Indian Oil Corporation advanced 3.3% to ₹144. The gains were driven by expectations that lower crude prices would reduce inventory and working capital pressures while improving marketing margins for these companies. As reported by Moneycontrol, the rally followed the overnight decline in oil prices that boosted sentiment for sectors benefiting from lower fuel and raw material costs.
Tyre stocks attracted strong buying interest with JK Tyre jumping 4.5%, CEAT gaining 2.3%, and Apollo Tyres rising nearly 2%. The rally extended to other sectors sensitive to crude prices, with InterGlobe Aviation, the parent of IndiGo, climbing 1.6%. Paint manufacturers also benefited from the decline, with Asian Paints and Berger Paints rising about 1% each, as reported by Moneycontrol.
The fall in crude oil prices globally came as optimism grew that the United States and Iran were moving closer to a peace deal. US President Donald Trump on Saturday said Washington and Iran had 'largely negotiated' an understanding on a peace deal that would reopen the Strait of Hormuz. However, as per Livemint, both sides remain at odds on several difficult issues, with Trump saying on Sunday he had told his representatives not to rush into any deal with Iran as his administration played down expectations of an imminent breakthrough in the three-month-old war. A full reopening of the Strait of Hormuz — which in peacetime typically handled around a fifth of the world's oil and liquefied natural gas — would be a relief for energy importers across Asia, including India.
