 "ONGC, Oil India hit fresh 52-week high on surge in oil prices")
Shares of oil exploration & production (E&P) companies such as Oil Natural Gas Corporation (up 2.3% at Rs 314) and Oil India (2.5% at Rs 454) have hit their respective fresh 52-week highs on the BSE in early morning trade tracking surge in oil prices.
Aban Offshore, Hindustan Oil Exploration, Selan Exploration Technology, Deep Industries, Cairn India and Jindal Drilling & Industries are other from the E&P sector, trading higher between 2% to 4% on the BSE in an otherwise weak market. The S&P BSE Sensex was down 0.41% or 109 points at 26,638 at 09:28 am.
Higher crude prices will result in higher realisation for oil exploration and related business companies and result in increased profitability for them.
According to Reuters report, oil prices shot up by 4% to their highest level since 2015 early on Monday after Organization of the Petroleum Exporting Countries (OPEC) and other producers over the weekend reached their first deal since 2001 to jointly reduce output in order to rein in oversupply and prop up the market.
Brent crude futures, the international benchmark for oil prices, soared to $57.89 per barrel in overnight trading between Sunday and Monday, its highest level since July 2015. US West Texas Intermediate (WTI) crude futures also hit a July 2015 high of $54.51 a barrel, added report. CLICK HERE TO READ FULL REPORT.
Aban Offshore, Hindustan Oil Exploration, Selan Exploration Technology, Deep Industries, Cairn India and Jindal Drilling & Industries are other from the E&P sector, trading higher between 2% to 4% on the BSE in an otherwise weak market. The S&P BSE Sensex was down 0.41% or 109 points at 26,638 at 09:28 am.
Higher crude prices will result in higher realisation for oil exploration and related business companies and result in increased profitability for them.
According to Reuters report, oil prices shot up by 4% to their highest level since 2015 early on Monday after Organization of the Petroleum Exporting Countries (OPEC) and other producers over the weekend reached their first deal since 2001 to jointly reduce output in order to rein in oversupply and prop up the market.
Brent crude futures, the international benchmark for oil prices, soared to $57.89 per barrel in overnight trading between Sunday and Monday, its highest level since July 2015. US West Texas Intermediate (WTI) crude futures also hit a July 2015 high of $54.51 a barrel, added report. CLICK HERE TO READ FULL REPORT.