Most paint stocks were in the red on Friday amid brent crude oil hovering around $100 per barrel. The October contract of brent crude oil on the Intercontinental Exchange was up 0.2 percent at $99.78 per barrel.

Paint companies use crude oil derivatives to manufacture paint. Higher crude oil prices would lead to higher manufacturing cost, thereby denting margins.

At 12:54 IST, shares of Berger Paints, Indigo Paints, Kansai Nerolac Paints, were flat to about a percent lower.

Oil is headed for the biggest weekly gain in four months because of interruptions to supply and speculation that switching fuel will buoy demand.

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

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

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

On the contrary, the Organisation of the Petroleum Exporting Countries (OPEC) on Thursday cut its 2022 forecast for growth in world oil demand, citing the economic impact of Russia's invasion of Ukraine, high inflation and efforts to contain the pandemic.

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First Published:Aug 12, 2022 2:37 PM IST