How Crude Oil Price Surge Impact The OMCs And Paint Stocks?

Crude Oil price surge will have a direct impact on the OMC and paint stocks as OMCs (Oil Marketing Companies) complete business depends on the crude oil. Thus, the increase in crude oil prices leads to a chance of a fall in the company’s stock performance. The same goes for the paint industry as it has its maximum raw material from crude oil products. How will the crude oil price surge impact the stocks of the companies? Let us decode more about it below.

How Crude Oil Prices Impact The OMC And Paint Industry?

Crude Oil Prices have been rising for a few days. The main reason behind the crude oil price hikes is the ongoing war in the Middle East region. It has increased over time which is becoming the main concern for the oil trades over the year. If the conflicts continue, it may lead to an increase in crude oil prices. It will also become the reason for the fall in the paint and OMC shares. If we talk about Asian Paints’ share price, it is Rs. 3,072.50 per share. It had a fall of 2.44% today. Weekly as well, it falls by 6.26%.

Berger Paints has a share price of Rs. 576.95 per share. It fell by 3.37% today. If we talk about the weekly basis, it falls by 6.5% in the past week. Nerolac share price is Rs. 292.10 per share. It fell by 3.18% today. This week, there was a fall of 4.65% in the share. If we talk about oil marketing companies (OMC), Hindustan Petroleum Corp Ltd, (HPCL) has a share price of Rs. 406.90 per share. It had a fall of 4.16% in the last five days. While BPCL has a share price of Rs. 340.25 per share. It fell by 2.47% today. Its five-day fall was 2.66%.

The major reason behind the fall in the share prices is the origin of these industries. The paint industry has almost 60% of its raw material from crude. Oil Marketing companies’ base product is crude oil-made products such as petroleum and diesel. Crude oil price surge will impact the prices of its finished products. Thus, paints and related products cost will increase. Also, the cost of petroleum and diesel will increase. Apart from that, the Pharmaceutical industry also uses crude oil. It can also impact its cost. We hope you get enough details about the crude oil price surge’s major impacts above. Stay tuned for more information on our website.