Shares of state-run oil producers Oil and Natural Gas Corporation (ONGC) and Oil India rose up to 3% on Monday, buoyed by higher global crude oil prices following intensified military exchanges between Israel and Iran that raised fears of a broader regional conflict. However, the crude rally dragged down oil marketing companies (OMCs) and tyre makers amid concerns over rising input costs.ONGC share price rose as much as 2% to Rs 256.40 on the BSE, while Oil India gained 2.9% to touch Rs 491.65. Higher crude prices tend to support upstream producers like ONGC and Oil India by boosting their realisations from oil sales.While upstream stocks surged, the rally in crude put pressure on downstream oil refiners. Indian Oil Corporation (IOCL) declined 1.1% to Rs 138.95. Bharat Petroleum Corporation (BPCL) shed nearly 1.2% to Rs 308.80, while Hindustan Petroleum Corporation (HPCL) dropped 1% to Rs 383.20.Tyre manufacturers also faced sharp selling, weighed down by fears of higher input costs. MRF slipped 0.8% to Rs 1,36,502.25, JK Tyre & Industries fell 3.3% to Rs 355.35, and CEAT declined 2.4% to Rs 3620.60.Oil prices remained volatile in early trade on Monday, after surging 7% on Friday. Brent crude futures rose 64 cents, or 0.86%, to $74.87 a barrel by 0507 GMT, while U.S. West Texas Intermediate (WTI) crude gained 76 cents, or 1.04%, to $73.74. Both benchmarks had surged more than $4 a barrel earlier in the session and briefly slipped into negative territory before recovering.The gains came after renewed strikes by Israel and Iran over the weekend increased concerns that the battle could widen across the region and significantly disrupt oil exports from the Middle East.Iranian missiles struck Israel’s Tel Aviv and the port city of Haifa on Monday, destroying homes and fuelling concerns among world leaders at this week’s G7 meeting that the battle between the two old enemies could lead to a broader regional conflict. An exchange of strikes on Sunday also led to civilian casualties, as both militaries urged civilians on the opposing side to take precautions against further strikes.Also read | Oil firm as intensifying Israel-Iran conflict stokes supply disruption fearsThe developments have intensified market anxiety about the security of the Strait of Hormuz, a critical oil transit chokepoint. About a fifth of the world’s total oil consumption, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel, passes through the strait.Iran, a key OPEC member, produces around 3.3 million bpd and exports over 2 million bpd of oil and fuel.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Shares of state-run oil producers Oil and Natural Gas Corporation (ONGC) and Oil India rose up to 3% on Monday, buoyed by higher global crude oil prices following intensified military exchanges between Israel and Iran that raised fears of a broader regional conflict. However, the crude rally dragged down oil marketing companies (OMCs) and tyre makers amid concerns over rising input costs.ONGC share price rose as much as 2% to Rs 256.40 on the BSE, while Oil India gained 2.9% to touch Rs 491.65. Higher crude prices tend to support upstream producers like ONGC and Oil India by boosting their realisations from oil sales.While upstream stocks surged, the rally in crude put pressure on downstream oil refiners. Indian Oil Corporation (IOCL) declined 1.1% to Rs 138.95. Bharat Petroleum Corporation (BPCL) shed nearly 1.2% to Rs 308.80, while Hindustan Petroleum Corporation (HPCL) dropped 1% to Rs 383.20.Tyre manufacturers also faced sharp selling, weighed down by fears of higher input costs. MRF slipped 0.8% to Rs 1,36,502.25, JK Tyre & Industries fell 3.3% to Rs 355.35, and CEAT declined 2.4% to Rs 3620.60.Oil prices remained volatile in early trade on Monday, after surging 7% on Friday. Brent crude futures rose 64 cents, or 0.86%, to $74.87 a barrel by 0507 GMT, while U.S. West Texas Intermediate (WTI) crude gained 76 cents, or 1.04%, to $73.74. Both benchmarks had surged more than $4 a barrel earlier in the session and briefly slipped into negative territory before recovering.The gains came after renewed strikes by Israel and Iran over the weekend increased concerns that the battle could widen across the region and significantly disrupt oil exports from the Middle East.Iranian missiles struck Israel’s Tel Aviv and the port city of Haifa on Monday, destroying homes and fuelling concerns among world leaders at this week’s G7 meeting that the battle between the two old enemies could lead to a broader regional conflict. An exchange of strikes on Sunday also led to civilian casualties, as both militaries urged civilians on the opposing side to take precautions against further strikes.Also read | Oil firm as intensifying Israel-Iran conflict stokes supply disruption fearsThe developments have intensified market anxiety about the security of the Strait of Hormuz, a critical oil transit chokepoint. About a fifth of the world’s total oil consumption, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel, passes through the strait.Iran, a key OPEC member, produces around 3.3 million bpd and exports over 2 million bpd of oil and fuel.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) Economic Times
