ONGC, Oil India Shares Gain as Crude Prices Surge Amid Geopolitical Turmoil

As of 10:22 AM IST, shares of Oil and Natural Gas Corporation (ONGC) and Oil India Ltd surged in early trade on Friday, tracking a sharp rebound in global crude oil prices following escalating geopolitical tensions between Iran and Israel.

While the oil market witnessed a sell-off, upstream producers gained due to immediate profit benefits from higher oil realisations. ONGC’s stocks opened at ₹255.55, a 3.09% rise from the previous day’s close, whereas Oil India’s gained 2.49%, reaching ₹480 per share. The stocks were trading at 251.61 (ONCG) and 479.25 (Oil India) as of 12:32, a minor intraday low.

Crude Oil Rally Lifts Energy Stocks

The rally in oil stocks came as Brent Crude prices jumped to over $78 per barrel, reversing from lows below $59 in May, a level not seen since February 2021. The surge was triggered by Israel’s recent airstrikes on Iran, reigniting supply disruption fears in one of the world’s most sensitive energy corridors.

This hike in stock prices came despite a broad sector-wide sell-off. The spike in oil prices improved the outlook for upstream oil producers like ONGC and Oil India, as higher crude benchmarks directly enhance their net realisations.

Geopolitical Risk Premium Returns

Market watchers noted that Iran, a key oil supplier, particularly to China, which consumes 20% of global oil, has once again become a flashpoint. The risk premium on crude has returned as fears of a broader regional conflict resurface, drawing investor attention back to energy exporters.

Broader Market Trend in Contrast

Interestingly, the rise in ONGC and Oil India counters came despite a broad market sell-off. Equity indices were dragged down by investor nervousness stemming from the same geopolitical concerns that lifted oil prices, underlining a sector-specific divergence in sentiment.

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