Boiling oil and paint stocks suffer


By CNBCTV18.com IST (Released)

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Paint stocks: Most paint stocks were in the red on Friday as Brent crude hovered around $100 a barrel. Paint companies use derivatives of crude oil to make paint. Higher crude oil prices would lead to higher manufacturing costs, which would reduce margins.

Most paint stocks were in the red on Friday as Brent crude hovered around $100 a barrel. The October brent crude oil contract on the Intercontinental Exchange rose 0.2% to $99.78 a barrel.

Paint companies use derivatives of crude oil to make paint. Higher crude oil prices would lead to higher manufacturing costs, which would reduce margins.

As of 12:54 p.m. IST, shares of Berger Paints, Indigo Paints, Kansai Nerolac Paints were flat at around one percent lower.

Oil is heading for the biggest weekly gain in four months on supply disruptions and speculation that the fuel shift will boost demand.

This weekly gain comes after falling to a six-month low last week. Oil prices had fallen as investors worried about the outlook for slowing economic growth and weaker consumption.

Meanwhile, soaring natural gas prices could lead some consumers to turn to oil, which is why the International Energy Agency has raised its oil demand growth forecast for this year.

The agency raised its demand outlook for 2022 by 380,000 barrels per day.

Boiling oil and paint stocks suffer

On the contrary, the Organization of the Petroleum Exporting Countries (OPEC) on Thursday lowered its forecast for global oil demand growth for 2022, citing the economic impact of Russia’s invasion of Ukraine, high inflation and efforts to contain the pandemic.


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