Commodity Online
MUMBAI: Oil exploration companies recorded a decline in the stock prices on the Bombay Stock Exchange following a weakness in the crude oil prices.

International crude oil prices drifted around USD 70 per barrel leaving oil exploration companies in jitters. Oil and Natural Gas Corporation Ltd (ONGC) (BOM: 500312) and Cairn India Ltd (BOM: 532792) recorded a decline on the bourses today. ONGC traded at Rs.1111.45 down by over 1% while Cairn India Ltd was trading at Rs.235 down by over 1.5% on the Bombay Stock Exchange (BSE).



Crude oil prices drifted lower on in the international markets at USD 70.20 per barrel. Crude oil futures had settled down USD 1.42 or 1.97% at USD 70.62 per barrel on the New York Mercantile Exchange on Monday, 15 June 2009 after a weak New York manufacturing report raised concerns about the US economy. However, it extended losses and fell below USD 70 per barrel in the early trades on Tuesday.

On the Indian commexes, crude prices hovered at Rs.3394 for MCX June contract, against Rs.3415 in spot markets.

The fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms. Following this, Cairn India reported a net loss of Rs.16.90 crore in the quarter ended March 2009 as compared to net loss of Rs.8.73 crore in the quarter ended March 2008. Company’s total income surged 206% to Rs.69.33 crore in the quarter ended March 2009 over the quarter ended March 2008.

ONGC’s financial results for Q4 March 2009 are due on 24 June 2009. The company had reported a fall in the net profits by 43.3% to Rs.2474.81 crore on 17.8% increase in net sales to Rs.12436.43 crore in Q3 December 2008 over Q3 December 2007.

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