ONGC, OIL, Cairn surge; OMCs down on spurt in crude price
Shares of upstream oil producers like ONGC, Oil India and Cairn India surged while oil marketing companies shed weight in Wednesday's trade.
By ET Online |
NEW DELHI: Shares of upstream oil producers like ONGC, Oil India and Cairn India surged while oil marketing companies shed weight in Wednesday's trade after crude prices soared nearly 5 per cent to hit their highest level in more than a month on Tuesday .
Brent crude, the global crude benchmark, rose 12 cents to $49.37 a barrel on Tuesday following a 2.3 per cent spurt on Monday to settle at $49.25 a barrel. The US benchmark, West Texas Intermediate or WTI crude, increased 8 cents to $46.34, after gaining 1.6 per cent in the previous session.
As if on cue, domestic oil producers gained on the bourses Wednesday morning. Shares of ONGC closed 4 per cent at Rs 256.90 and Oil India ended 2.64 per cent to Rs 456.25 while private explorer Cairn India closed 5.32 per cent higher at Rs 167.25. The BSE oil and gas index closed up by 1.4 per cent in the first hour of trade.
The ONGC stock was the biggest gainer in the 30-share Sensex pack in Wednesday's opening trade. The company on Tuesday said it might see a Rs 4,900 crore saving on planned exploration spending of Rs 24,500 crore in the year through March 2016 as exploration costs are projected to drop by one-fifth as fees for rigs and vessels moderate after businesses including BP and Royal Dutch Shell curbed outlays.
Oil market companies, however, sufferred losses. HPCL lost 1 per cent to Rs 799 and IOC 0.15 per cent to Rs 402. Going against the wind, BPCL was marginally up at Rs 878, while private refiners Essar Oil and Reliance Industries were flat at Rs 197 and Rs 896, respectively.
The sudden surge in oil price was triggered by the US government data that showed a decline in production and after Russia signalled it was willing to meet other big oil producers to discuss the market following a sharp decline in prices in the last quarter.
At Tuesday's close, the commodity was up more than 27 per cent from its August low. A Reuters poll on Monday indicated that US crude stockpiles were up last week for the second straight week, gaining 1.8 million barrels on average in the week to October 2.
Brent crude, the global crude benchmark, rose 12 cents to $49.37 a barrel on Tuesday following a 2.3 per cent spurt on Monday to settle at $49.25 a barrel. The US benchmark, West Texas Intermediate or WTI crude, increased 8 cents to $46.34, after gaining 1.6 per cent in the previous session.
As if on cue, domestic oil producers gained on the bourses Wednesday morning. Shares of ONGC closed 4 per cent at Rs 256.90 and Oil India ended 2.64 per cent to Rs 456.25 while private explorer Cairn India closed 5.32 per cent higher at Rs 167.25. The BSE oil and gas index closed up by 1.4 per cent in the first hour of trade.
The ONGC stock was the biggest gainer in the 30-share Sensex pack in Wednesday's opening trade. The company on Tuesday said it might see a Rs 4,900 crore saving on planned exploration spending of Rs 24,500 crore in the year through March 2016 as exploration costs are projected to drop by one-fifth as fees for rigs and vessels moderate after businesses including BP and Royal Dutch Shell curbed outlays.
Oil market companies, however, sufferred losses. HPCL lost 1 per cent to Rs 799 and IOC 0.15 per cent to Rs 402. Going against the wind, BPCL was marginally up at Rs 878, while private refiners Essar Oil and Reliance Industries were flat at Rs 197 and Rs 896, respectively.
The sudden surge in oil price was triggered by the US government data that showed a decline in production and after Russia signalled it was willing to meet other big oil producers to discuss the market following a sharp decline in prices in the last quarter.
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At Tuesday's close, the commodity was up more than 27 per cent from its August low. A Reuters poll on Monday indicated that US crude stockpiles were up last week for the second straight week, gaining 1.8 million barrels on average in the week to October 2.
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