Can investors benefit from Brent crude rally?

Brent crude is hovering around $92 per barrel-mark even as faint signs of progress in nuclear talks between the United States and Iran emerge.
If US sanctions are lifted, Iran could export millions of barrels of crude and help to drive down red-hot oil prices.
However, the move may not be enough to cool off the prices as tensions remain high in Eastern Europe.
 
Crude prices have rallied about 20% this year and 16% in the past month, as tensions between Russia and NATO simmered over Ukraine. Technically, if WTI March holds $91.60 level, it could rise up to $93.60 levels.

Analysts worry oil prices are headed higher, and can hit $125 a barrel by June 2022 given these tensions and a pick-up in demand over the months ahead.
Platts Analytics, for instance, expects India’s gasoline demand to grow about 5 per cent in 2022 after rising 12 per cent in 2021.
 
"India’s gasoline demand had already recovered back to above 2019’s levels. The resurgence of COVID-19 in the country is expected to slow demand in Q1, but we still see growth for the whole of 2022 as the situation starts to improve. Mobility seems to be picking up as daily infections started to ease,” says JY Lim, Advisor, Oil Markets, S&P Global Platts Analytics

But, rising crude oil prices may not be all that bad news, especially for companies that are engaged in drilling and extraction of oil.
D-Street mavens are bullish on the road ahead for oil drilling companies such as ONGC, OIL India and Reliance Industries, who could gain from a rise in crude oil prices.
 
Another sector that is likely to benefit is electric vehicles (EV), as people may opt to buy EVs instead of the ones that run on conventional fuel.

Technical chartists, too, remain bullish on these stocks from a medium-term perspective and expect these stocks to gain between 10 and 15% in the next 6 – 8 months.

A mild dip in oil prices and bond yields on Tuesday did cap downside in the markets yesterday as benchmark indices snapped their three-day losing run.
The BSE Sensex index is now at 57,808 while the Nifty50 is at 17,267 as global headwinds keep investors on their toes.
Today, investors will react to Q3 earnings of Bharti Airtel and IRCTC, announced post-market hours yesterday, and will eye quarterly results of ACC, Berger Paints, Nykaa and Tata Power among others.

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