Shares of Oil and Natural Gas Corp. and Oil India Ltd. rose on Friday, defying market trends as crude oil prices rose amid Israel's air strikes in Iran. The rising crude prices helped improve the outlook on the net realisations earned by oil producers.
ONGC shares rose 3.09% to Rs 255.55 per share, while Oil India was up 2.49% to Rs 480 per share.
Brent crude August future contract surged 13.8% to $78.50 a barrel, the highest level since Jan. 27. It was trading 8.72% higher at $75.36 a barrel as of 9:32 a.m.
Crude prices that have been on a decline saw some reversal in the last few months amid increasing geopolitical tensions in the Middle East. The Brent Crude had slipped below $59 in May, the lowest level since February 2021. However, it has risen over $78 in Friday's session.
"Iran is among the world's largest producers of oil, and it sells almost all of what it produces to China, which consumes 20% of the global supply," said Kunal Sodhani, head of treasury, global trading centre, FX & Rates Treasury.
Israel has declared a state of emergency on anticipation of a retaliatory attack from Iran. Iran's Supreme Leader Ayatollah Ali Khamenei said that the country will respond, as reported by Bloomberg.
Israel Prime Minister Benjamin Netanyahu said that the attacks targeted military, and nuclear program sites, Bloomberg reported.
The attacks claimed lives of several commanders and scientists, Iran said. Supreme Leader Ayatollah Ali Khamenei said they will deliver a severe response, Bloomberg reported.
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