ONGC shares down by more than 3% today as increased supply of Venezuelan oil may keep oil prices depressed

ONGC shares are sharply down today. At 1:30 p.m. IST, 8^th January, 2025 the stock is down by 3.21%, trading at Rs 231.41 per share. Nifty 50 index is down by 0.91% at this time. The stock is the second biggest loser at Nifty 50 at this time.

Oil prices may go down further because of increase in production in Venezuela

ONGC shares are declining today as increased supply of Venezuelan oil in global markets is likely to keep oil and gas prices further depressed in the foreseeable future. US President Donald Trump has said that American investments will increase in Venezuelan oil industry. This will increase oil production in the country. During the reign of Nicolas Maduro, Venezuela’s oil output had fallen by more than 20% in a decade because of factors like nationalization of oil companies, poor maintenance, and sanctions against Maduro government by a number of countries.

ONGC is an oil & gas production and exploration company. Higher oil & gas prices are beneficial for it. Decline in oil & gas prices can have an adverse impact on its revenues and profitability. At this time today, Brent crude for February delivery is trading at $60.07 per barrel. WTI crude is trading at $56.08 per barrel.

In the past 5 days before today, ONGC shares had lost around 0.30%. In the past 1 year ONGC’s stock has lost 14.77%. Nifty 50 index gained 9.36% in the past 1 year. ONGC shares have underperformed the Nifty 50 index by more than 23% in this period.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source : NSE, ONGC