Share price of Oil Gas and Corporation (ONGC) gained 3.5 percent and closed at Rs 117.65 on June 1, following the global oil prices amid hopes for recovery during the pandemic.
In the last six months, stocks have rallied 45 percent and surged 81 percent over the last eight months, especially after a gradual increase in oil prices in the international markets.
State-owned Oil India to have gained 3 percent to close at Rs 136.50 compared to last six month’s gains to around 37 percent.
Brent crude August futures international benchmark for oil prices, traded at $70.78 a barrel, up 2.11 percent, ahead of OPEC+ meeting. In the last 8 months, oil price climbed from $37.46 a barrel on October 30, 2020, to $70.78 a barrel today, an 89 percent jump.
Oil price rise in the international market impacts the average realization of every barrel of oil sold by the state-owned oil & gas exploration company, as it produces around two-thirds of the country’s crude oil.
“The summer driving season officially got underway following the Memorial Day weekend, which has increased fuel consumption in the US i.e. largest energy consumer in the world,” said Abhishek Bansal, Founder Chairman at Abans Group.
Tracking firm GasBuddy said Sunday’s US gasoline demand jumped 9.6 percent above the average of the previous four Sundays, the highest Sunday demand since the summer of 2019.
Concerning to OPEC meeting scheduled On June 1 given the backdrop of rising crude oil prices lately. “The street expects a decision to increase output from July onwards.
Any stalemate of this front, could see crude price moving towards $80 a barrel mark and stroke inflationary concerns globally,” said Gaurav Dua, SVP, Head – Capital Market Strategy at Sharekhan by BNP Paribas.