Rising energy prices spell gains for oil producers

ONGC, Oil India stand to gain, but downstream players may feel the heat

Global energy markets always see some turmoil as the northern winter approaches and demand for fuel oil and gas rises. This year could see bigger spikes than usual because apart from normal seasonal demand, global economic activity may accelerate due to wider vaccination coverage.
 
Taking the Indian crude basket as a benchmark, crude prices rose from $50 per barrel in December 2020 to $74.2 in August. Gas prices are more seasonally driven. But Asian spot LNG prices (Japan Korea Marker or JKM) are at historical highs and European gas prices rose by 22 per cent in the past week.