Why are oil & gas stocks gaining today?

At 12:31 p.m. IST, 11^th June, 2025, Nifty Oil & Gas index is the top gainer among sectoral indices. It is up by 1.96%. At this time, ONGC is up by 1.88%, trading at Rs 249.28. Oil India is up by 6.68%, trading at Rs 466.60. Indian Oil is up by 2.78%, trading at Rs 146.15.

Hope that a global economic recession may be averted after US, China agree on trade framework

Stocks of oil & gas production and exploration companies are gaining today, after USA and China agreed on a trade framework yesterday. This trade framework proposes to extend the trade war truce reached between the two countries last month. As part of this framework, China will relax restrictions on exports of rare earth minerals to US. In return turn US will relax restrictions on export of software chips and other technology products to China. This framework increases the hope that the two countries will ultimately reach to a settlement at much lower level of tariffs.

The ongoing tariff war has significantly increased the risk of global economic recession. Oil prices go down when there is economic slowdown or recession. Oil & gas production companies gain when oil prices go up.

EU proposes lower cap on Russian oil

Indian oil’s stock price is gaining today after European Union’s proposal to lower the cap on Russian oil to $45 per barrel from the existing $60 per barrel. This is part of tightening of sanctions on Russia. The cap means that companies of countries that ratify this measure can buy Russian seaborne oil only at a price below the cap. The lower cap on Russian oil may push global oil prices down further. Indian oil marketing companies stand to gain if global crude oil prices go down.

At 12: 50 p.m. Indian standard time, today, WTI crude for July delivery is up by .02%, trading at $64.98 per barrel. Brent crude for July delivery is down by 0.03% at $66.84 per barrel.

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Source: NSE