Shares of most downstream oil companies were falling for the second straight session on Friday amid rising crude prices. Global oil prices soars amid escalating geopolitical tensions in Middle East and a fears of a full-scale war.

What Happened: On Thursday, President Joe Biden indicated that the United States was contemplating strikes against Iran's oil facilities in response to Tehran’s missile attack on Israel, sending oil prices soaring.

Shares of Indian Oil Corporation (IOC) were in the red on Friday despite the company entering into an agreement with Nepal Oil Corporation (NOC).

The pact was inked by Senthil Kumar N, director of pipelines at Indian Oil, and Chandika Prasad Bhatta, managing director of NOC.

This agreement is a follow-up to a government-to-government (G2G) memorandum of understanding (MoU) signed between India and Nepal on May 31, 2023. The agreement includes the extension of the Motihari – Amlekhgunj petroleum pipeline to Chitwan, Nepal and the construction of oil storage terminals at Chitwan and Jhapa, the company said in its statement.

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Additionally, BPCL also signed an MoU with the Mumbai Port Authority (MbPA) and Mumbai Port Sustainability Foundation (MPSF), for setting up a green fuel ecosystem at the port, the company said in a statement.

"The MoU will focus on establishing electric vehicle (EV) charging stations, converting diesel-powered vessels to cleaner fuels and fostering sustainable practices such as source segregation and solid waste management."

Price Action: Indian Oil was trading 1.38% lower at ₹168.96 on Friday. Shares of BPCL were down 2.54% to ₹339.85 and HPCL lost 3.34% to trade at ₹401.20.

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