Oil India surged 9.8 per cent to Rs 245, while ONGC gained 4.6 per cent at Rs 168.05. In the past six months, ONGC and Oil India have outperformed the market, having rallied 41 per cent and 30 per cent, respectively.
Mumbai: Shares of state-owned oil exploration and production companies, Oil India and Oil Natural Gas Corporation (ONGC) jumped nearly 10 per cent on Wednesday due to skyrocketing global crude oil prices, highest since 2014.
Lower supplies as well as hostilities between Russia and Ukraine pushed Brent crude oil price to nearly an 8-year high at $111 per barrel. In just the last two days, crude prices have risen nearly 15 per cent. At present, Russia is the third largest producer of crude oil in the world and sanctions against Russia may hurt global supply.
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Among individual stocks, Oil India surged 9.8 per cent to Rs 245, while ONGC gained 4.6 per cent at Rs 168.05 on the BSE in intra-day. In comparison, the S&P BSE Sensex was down 1 per cent at 55,649 at 09:30 am.
In the past six months, ONGC and Oil India have outperformed the market, having rallied 41 per cent and 30 per cent, respectively, as against a 3.8 per cent decline in the benchmark index.
“Russia is the third largest exporter of crude oil after the U.S. and Saudi Arabia and Russian invasion on Ukraine has affected global supply of oil. As per the API report released on Tuesday the U.S. inventories unexpectedly declined by 6.1 million barrels last week and also supported oil prices,” brokerage firm Prithvi Finmart was quoted as saying by news agency IANS in a note.
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Brent touches nine-year high, supply issues roil oil markets
Oil prices extended their rally on Thursday, with Brent rising above $118 a barrel as trade disruption and shipping issues from Russian sanctions over the Ukraine crisis sparked supply worries, while U.S. crude stocks fell to multi-year lows.
Brent crude futures rose as high as $118.22 a barrel, the highest since February 2013. The contract was at $116.60 a barrel, up $3.67, or 3.2%. U.S. West Texas Intermediate crude hit an 11-year high of $114.70 a barrel and was at $113.01 a barrel, up $2.41, or 2.2%.
