Shares of Indian oil companies were mixed on Wednesday, reacting to global trends as prices of Brent crude dipped below $70 (₹5,877) for the first time in nearly three years.

What Happened: On Tuesday, Brent prices slipped to around $69 (₹5,793) a barrel, the lowest since December 2021, whereas U.S. crude prices fell to about $65 (₹5,457) per barrel, lowest since May 2023.

The slump in prices came after the Organization of the Petroleum Exporting Countries (OPEC) lowered its demand outlook for 2024 and 2025. ONGC and Oil India both lost over 2% each during early trade.

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Oil India, ONGC Videsh and Khanij Bidesh India Limited (KABIL) inked a Memorandum of Understanding (MoU) with the United Arab Emirates’ International Resources Holding RSC (IRH) on Tuesday to collaborate on the critical mineral supply chain.

The project entails collaboration, identification, acquisition and development of key mineral projects worldwide, including within India, Oil India said in a press release.

Beneficiaries of the decline, oil marketing companies, made early gains as markets opened. The stocks were wobbly as investors worried about possible rate cuts after the fall in prices. Paint stocks also gained amid expectations of lower raw material costs.

Price Action: ONGC was down 2.49% to ₹288.25, Oil India plunged 6.1% to trade at ₹571.75.

Indian Oil Corporation (IOC) was trading flat at ₹173.83, Hindustan Petroleum Corporation (HPCL) lost 1% to trade at ₹417.10, Bharat Petroleum Corporation (BPCL) was muted at ₹344.50.

Asian Paints gained 1.85% to ₹3,356, Berger Paints was up 3% to ₹620 and Kansai Nerolac Paints added 2.21% to trade at ₹314.85.

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