Crude oil prices plunge 3% as OPEC+ announces output increase; OMCs, Paints and Tyre companies rally

Crude oil prices slashed over 3.5% on Monday morning after OPEC+ announced a hike in the output to 411,000 barrels per day from June.WTI crude oil futures fell more than 3% to around $56.2 per barrel on Monday as OPEC+ agreed to ramp up production, fueling fears about a global supply glut. OPEC+ will accelerate oil output hikes for a second consecutive month, raising output in June by 411,000 bpd.

Following the development, shares of oil marketing companies, paint manufacturers, and tyre companies rallied in the range of 2% to 3%. Crude oil prices have dropped nearly 30% in last year and 21% in 2025. The sharp fall in crude oil prices is margin accretive for many companies which use oil and its derivatives as key raw materials.

Shares of oil marketing companies are the primary beneficiaries of a sharp drop in crude oil prices. Following the plunge in crude, shares of BPCL traded at ₹323 a piece, up by 4.1%, Hindustan Petroleum up 5.6% and Indian Oil Corporation up 3.9%.

Apart from these shares of paint companies like Asian Paints (+2%), Berger Paints (+1.8%), Indigo Paints(+1.0%), and Kansai Nerolac (+0.7%) also traded higher in the morning session.