ONGC Shares Touch Four-Month High, Oil India Extends Rally Amid Escalating Israel-Iran Tensions
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 share price of oil companies like Oil and Natural Gas Corp., and Oil India Ltd. rose 2.14% and 2.88%, respectively, as global crude prices saw a hike amid the escalating Israel-Iran conflict.
Shares of ONGC touched a four-month high at Rs 256.89 apiece. They later pared gains to trade 1.81% higher at Rs 256.60. Oil India stock touched a five-month high at Rs 491.50 apiece, and later pared gains to trade 1.58% higher at Rs 485.15 as of 10:40 a.m.
According to Bloomberg, brent crude increased as high as 5.5% at open on Monday. As of 10:30 a.m. brent futures were trading in the green at $74.89.
Crude prices that have been on a decline saw some reversal in the last few months amid increasing geopolitical tensions in the Middle East. Brent crude had slipped below $59 in May, the lowest level since February 2021. However, it had risen over $78 in Friday's session.
Israel launched an attack on the South Pars gas field, which led to the halt of a production platform, after strikes on Iran’s nuclear sites and military leadership last week, Bloomberg reported.
While an attack on Iran’s gas-producing infrastructure is a concern, the biggest fear for the oil market centres on the Strait of Hormuz. Middle East producers ship about a fifth of the world’s daily output through the narrow waterway, and prices could soar further if Tehran attempts to block the route, as per Bloomberg reports.
