Markets

Airline, OMC stocks decline on rebound in oil prices

NEW DELHI: Shares of airline and oil marketing companies (OMCs) dropped up to 2 per cent in Thursdays trade as crude prices rebounded from 17-month lows.

Shares of Jet Airways fell 1.64 per cent to Rs 264.50 on BSE.

SpiceJet declined 1.54 per cent to Rs 86.15. InterGlobe aviation dropped 0.72 per cent to Rs 1,150. Air turbine fuel (ATF) accounts for a major chunk of airlines expenditure.

Three OMC shares BPCL, HPCL and IOC shed up to 1.10 per cent.

On Wednesday, both US and Brent crude rose about 8 per cent, their largest one-day increase since November 30, 2016, when Opec signed a landmark agreement to cut production.

It was unclear whether follow-through buying would push prices higher again once trading desks are more fully staffed after the new year begins, Reuters reported.

US crude settled at $46.22 a barrel, up $3.69, or 8.7 per cent, while Brent crude, the global benchmark, rose $4, or 8 percent, to settle at $54.47 a barrel. It earlier fell to $49.93, lowest since July 2017, the report suggested. The black gold edged lower in Thursdays trade.

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