HPCL, other OMC stocks tumble 4% as oil surges back above $100; Iran warns prices can hit $200

Rising crude oil prices directly impact the profitability of Indian OMCs, as their ability to pass on costs to consumers is often regulated. Sustained high prices erode refining margins and working capital.

• •Oil marketing company shares tumbled 4% as crude prices surged past $100 per barrel.
• •The surge is attributed to Iran's attacks on Middle Eastern oil tankers, escalating regional tensions.
• •Iran warned that oil prices could potentially reach $200.
• •This volatility is expected to pressure OMCs' margins and cash flows.
• •Risk flag: Government intervention to subsidize fuel prices could temporarily cushion OMCs.