Shares of Reliance Industries, Chennai Petroleum Corporation, MRPL, other refiners rallied up to 5% on Thursday on reports that China plans to suspend exports of diesel and gasoline.
Reliance Industries share price jumped nearly 3%, while Chennai Petroleum Corporation shares rallied 5.4%, and Mangalore Refinery and Petrochemicals stock price surged as much as 5.72%.
Among PSU stocks, Indian Oil Corporation shares rallied 2.87%, Hindustan Petroleum Corporation Ltd (HPCL) share price gained 2.37%, while Bharat Petroleum Corporation Ltd (BPCL) share price rose 1.37%.
According to a Bloomberg report, China’s government has told the country’s largest oil refiners to suspend exports of diesel and gasoline as an escalating war in the Middle East disrupts the arrival of crude from one of the world’s largest producing regions.
Officials from the National Development and Reform Commission, the country’s top economic planner, met refinery executives and verbally called for a temporary suspension of refined product shipments that would begin immediately, Bloomberg reported, quoting people familiar with the matter.
The refiners were asked to stop signing new contracts and to negotiate the cancellation of already-agreed shipments, the report added.
However, an exception was made for jet and bunker fuel held in bonded storage and supplies to Hong Kong and Macau.
(With inputs from Bloomberg)
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