In early trade on May 2, shares of oil marketing companies Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp jumped 2–7% in response to a decline in Brent crude prices to their lowest points in two months.

After dropping more than 7% over the previous three days due to a rise in US output and crude stocks as well as mounting optimism for a Middle East truce, Brent oil prices fell below $84 per barrel.

This occurs after Brent oil prices crossed the $90 threshold last month and continued to rise owing to worries about supply disruptions brought on by Middle Eastern geopolitical unrest.

Oil marketing businesses benefit from a decline in Brent crude prices because it reduces their input costs and gives them more leeway to maintain competitive prices, which eventually boosts their margins.

As a result, at 11.53 am, IOCL and BPCL were up about 3 and 4 percent on the NSE, respectively, while shares of HPCL were up over 7 percent.

Indian Oil Corp. reported its Q4FY24 results on April 30, and on May 9, Hindustan Petroleum and Bharat Petroleum are expected to reveal their quarterly results.

IOC's consolidated net profit for the January–March quarter dropped 49% year over year to Rs 5,487.92 crore, largely due to an increase in oil prices during the quarter. In the first three months of 2024, there was a 16 percent increase in crude oil prices due to the Middle East's escalating geopolitical turmoil.

Additionally, revenue decreased, however slightly, from Rs 2.3 lakh crore in Q4FY24 to Rs 2.23 lakh crore in the same time last year.