Shares of oil marketing companies continued to be under selling pressure as oil prices were hovering near 2014-highs.

Oil markets were tense on concerns over a military escalation in Syria with Brent crude futures at $72.25 per barrel at 0250 GMT, up 19 cents, or 0.3 per cent from their last close.

Hindustan Petroleum Corp Ltd fell as much as 3.4 per cent, on track to post losses for a third straight session. Bharat Petroleum Corp Ltd dropped as much as 3.5 per cent to Rs 402.4, its lowest since June 2017. Shares of Indian Oil Corp Ltd fall nearly 5 per cent to Rs 159 to hit their lowest since December 2016.

OMC earnings still appear uncertain as subsidy risks mount in the face of rising crude and inadequate subsidy provisions in the budget, says Jefferies. The brokeragae adds “still prefer the cheaper and more resilient” Indian Oil Corp to HPCL or BPCL.

“We see real risk that even OMCs will be asked to take a portion of the subsidy burden if the government does not take the full burden,’’ says CLSA.