Shares of Asian Paints, Kansai Nerolac, Akzo Nobel, Indigo Paints, Berger Paints, and Shalimar Paints were trading lower, continuing their downward trend this week on March 19 as the price of crude oil approaches $113.
The rise in crude oil prices presents a significant challenge for paint manufacturers since oil and its derivatives are essential components in the paint production process. Crude oil prices have seen a sharp increase on Tuesday and Wednesday following attacks on energy infrastructure in the Gulf region by both Israel and Iran, further intensifying a conflict that is set to enter its fourth week soon.
US crude, or West Texas Intermediate, increased by as much as 3.5% during early trading in Asia on Thursday, March 19, approaching $99 a barrel. Following a brief decline on Wednesday, Brent prices shifted direction and ended near the $113 per barrel mark.
This variant has risen another 5% this morning, reaching a high of $112 a barrel, close to the initial war peak of $120. Additionally, US natural gas experienced an overnight surge of nearly 5%.
(more to come)