MRPL and Chennai Petroleum shares surged 5% each in intraday trade on the BSE on Monday, 28 September, defying weak stock market sentiment. Shares of Mangalore Refinery and Petrochemicals (MRPL) opened at ₹164.25 against their previous close of ₹164.85 and jumped 5.2% to an intraday high of ₹173.50. Around 11 am, the stock was at ₹170.85, up 3.64%.
On the other hand, Chennai Petroleum Corporation’s share price opened at ₹1,381.40 against its previous close of ₹1,375.90 and jumped 5.1% to an intraday high of ₹1,446.25. Around 11 am, the stock was 4.31% up at ₹1,435.20. Meanwhile, equity benchmark Sensex crashed more than 1,000 points, or 1.4%, during the session to hit an intraday low of 72,856.
Why are MRPL, Chennai Petroleum shares rising?
The rise in shares of MRPL and Chennai Petroleum could be largely attributed to the jump in crude oil prices. International crude oil benchmark Brent Crude jumped nearly 3% to trade above $107 per barrel after Iran reportedly said it won’t soften demands to reopen the Strait of Hormuz after Trump rejected the seven-day ceasefire proposal to do so.
Tensions in the region have been escalating, as the conflict remains unresolved despite several diplomatic efforts. US President Donald Trump on Sunday (local time) said that Washington will win the conflict with Tehran “very soon,” while adding that fresh military strikes ahead of the US midterms were “possible.”
Elevated oil prices are considered positive for oil refiners, as they expand gross refining margins (GRMs).
Experts highlight that due to rising oil prices and tighter fuel supplies, there has been a sharp uptick in crack spreads – the price difference between a barrel of crude oil and the refined petroleum products made from it.
(This is a developing story. Please check back for fresh updates.)
