Brent crude hits seven-day high above $91: IndiGo, Asian Paints, BPCL and Indian Oil shares under pressure

Oil-sensitive stocks and oil marketing companies came under pressure in morning trade on Tuesday, September 1, as Brent crude prices rose above $91 per barrel after fresh tensions between the US and Iran.

The Nifty Oil & Gas index fell 0.8% to an intraday low of 11,013.55, compared with 11,103.80 at the previous market close.

Aviation, paint and tyre stocks were trading lower, along with oil downstream companies. Oil India and ONGC, however, gained during the session.

Among oil-sensitive stocks, InterGlobe Aviation (IndiGo) fell 3.6%, Asian Paints 2.8%, Aegis Logistics 6.6%, Berger Paints 1.1%, BPCL 3.4%, HPCL 2%, GAIL India 3%, Indian Oil 2.8% and Petronet LNG 2.9% in intraday trade.

Brent crude rose to $91.56 per barrel, its highest level since August 25, 2026. The benchmark had crossed $91 in Asian trade as tensions in West Asia escalated.

The move followed attacks exchanged between the US and Iran on Monday, after nearly a month without military strikes between the two sides.

Iran reportedly fired missiles towards US targets in Jordan and the UAE after the US struck Iranian rocket launchers on Larak Island.

The latest developments have raised concerns about oil supplies from the region and have also reduced hopes of a near-term peace deal.

According to Anindya Banerjee, Head of Research – Currency, Commodities and Interest Rates at Kotak Neo, the physical oil market is also showing signs of tightness. The Brent-WTI spread remains elevated, while the steep backwardation between cash and 12-month Brent and firm product prices are also pointing to tighter market conditions. Fresh strikes on Russian refineries have pushed refining margins higher.

Brent remains in an uptrend, with resistance at $92-$93 per barrel and support at $90 and then $88.

Why are IndiGo, Asian Paints and BPCL shares falling?

Higher crude prices can increase costs for companies that use fuel or crude-linked raw materials.

For airlines, fuel is one of the biggest operating costs. A rise in crude prices can therefore increase aviation turbine fuel costs and put pressure on IndiGo's margins.

Paint companies such as Asian Paints use crude derivatives as raw materials. Tyre makers also use petroleum-based inputs, including synthetic rubber, leaving them exposed to higher oil prices.

Oil marketing companies such as Indian Oil and BPCL can also see pressure on margins when crude prices rise and the increase in costs cannot be passed on fully through fuel prices.

The impact is different for upstream companies. ONGC and Oil India can benefit from higher crude prices as the oil they produce fetches better realisations.

This was reflected in Tuesday's trade, with downstream and oil-consuming stocks falling while upstream oil companies gained.

Higher crude prices are also a concern for India as the country imports most of its oil requirements. If prices remain elevated, the import bill could rise further, putting pressure on the rupee and increasing costs for companies across sectors.

The market will now watch the US-Iran situation and any impact on oil supplies. A move towards the $92-$93 level in Brent could keep oil-sensitive stocks under pressure.

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