Reliance Industries and 2 Other Stocks Jump Up to 6% After China Halts Fuel Exports Amid US–Iran Tensions

Synopsis: Shares of Reliance Industries, Chennai Petroleum Corporation Limited, and Mangalore Refinery and Petrochemicals Limited rose up to 6% after China halted fuel exports, tightening global supply and boosting refining margins.

Indian refinery stocks witnessed strong buying interest on the back of improving global refining economics and tightening fuel supply. A sudden shift in export dynamics from China, combined with rising geopolitical tensions in key oil transit regions, has lifted refining margins and boosted sentiment across the sector. 

This development has supported gains in major refiners including Reliance Industries, Chennai Petroleum Corporation Limited, and Mangalore Refinery and Petrochemicals Limited. Brent Crude Oil is currently trading at around $84 per barrel, having gained about 19% over the past week and approximately 24% over the past month. 

Price Action

With a market capitalisation of Rs. 9,30,412 cr, the shares of Reliance Industries Ltd were trading at Rs. 1,382 per share, increasing 3% in today’s market session, making a high of Rs. 1,386.95, up from its previous close of Rs. 1,345.55 per share. 

With a market capitalisation of Rs. 15,219 cr, the shares of Chennai Petroleum Corporation Ltd were trading at Rs. 1,022 per share, jumping 5% in today’s market session, making a high of Rs. 1,053.85, up from its previous close of Rs. 999.75 per share. 

With a market capitalisation of Rs. 34,929 cr, the shares of Mangalore Refinery and Petrochemicals Ltd were trading at Rs. 199 per share, increasing 6% in today’s market session, making a high of Rs. 202.15, up from its previous close of Rs. 191.20 per share. 

News

Shares of major Indian refining companies such as Reliance Industries Limited, Chennai Petroleum Corporation Limited, and Mangalore Refinery and Petrochemicals Limited rallied up to 6%, even as global oil benchmark Brent Crude hovered near $84 per barrel. 

The surge in refining stocks came after reports that China has asked its refiners to suspend exports of diesel and gasoline, tightening global fuel supply and improving the profit outlook for refiners.

The move is reportedly linked to supply concerns stemming from rising geopolitical tensions between the United States and Iran near the strategically important Strait of Hormuz, a key route for global oil shipments. With China temporarily curbing exports, international markets are facing reduced fuel availability, which is pushing up refining margins for companies that can supply diesel and other petroleum products.

According to analysts at JM Financial, diesel crack spreads is a major indicator of refining profitability, and have risen sharply from about $20 per barrel to roughly $35–$45 per barrel. Since diesel makes up nearly 40–50% of total refinery output, this substantial increase could significantly enhance Gross Refining Margins (GRMs) by around $10 per barrel for Indian refiners, which may lead to a short-term improvement in their earnings.

However, analysts caution that medium-term risks remain. If geopolitical tensions escalate further and disrupt crude supply flows, refiners could face reduced throughput and operational challenges, which may offset the near-term benefits of higher margins.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Reliance Industries and 2 Other Stocks Jump Up to 6% After China Halts Fuel Exports Amid US–Iran Tensions appeared first on Trade Brains.