Shares of oil marketing companies Indian Oil, Bharat Petroleum and Hindustan Petroleum fell on Wednesday after crude oil prices rose over 1 percent to near $63 per barrel in the previous session. Oil prices rose after OPEC data showed it cut production sharply in January, and as lead member Saudi Arabia said it would reduce its output in March by an additional 500,000 barrels, reported Reuters.

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Indian Oil shares fell nearly 1 percent, BPCL shares fell 2.4 percent and HPCL shares were down 2.5 percent in the morning trade on the BSE. The benchmark Sensex traded 0.26 percent higher at 36,246.36 points.

Brent crude futures rose 91 cents, or 1.5 percent, to settle at $62.42 a barrel on Tuesday. US WTI crude oil futures rose 69 cents, or 1.3 percent, to settle at $53.10 a barrel.

Analysts said markets are tightening amid voluntary production cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) and because of US sanctions on Venezuela and Iran, noted Reuters. But some said supply-side risks were not receiving enough focus.

With OPEC engaged in supply management and the Middle East entangled in political conflicts while production outside the group surges, Bank of America Merrill Lynch said OPEC's global market share would fall as its outright output drops to 29 million barrels per day (bpd) in 2024 from 31.9 million bpd in 2018, according to Reuters.