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Brent Crude prices declined by ~30% from its May 2026 peak levels

ICICIdirect Research 16 Jun 2026 DISCLAIMER

News: Brent Crude prices declined by ~30% from its May 2026 peak levels of USD 115/barrel to USD 80/barrel. The correction in prices is due to agreement of peace deal between Iran and USA which will subsequently ease the movement across Strait of Hormuz thereby easing supply chain pressures.

View: Crude is an important input material for Paint companies and FMCG companies. Crude oil constitutes 20-25% of Paint companies input cost whereas for FMCG companies it forms ~10-15% of the input cost. Though crude continues to higher than normal levels of USD 65-70/barrel, yet the decline from higher levels to USD 80/barrel from USD 115/barrel provides the breather for Paint and FMCG companies. This will have positive sentiment impact in the stock prices of these companies having higher exposure to crude oil. If crude oil trends back to its normalised levels, margin pressure will start to ease more for paint companies and FMCG companies largely in H2FY27.

Impact: Positive

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