The rally in oil and gas stocks continued even on Wednesday as the spike in energy prices led crude prices to seven-year highs. On Nifty Oil & Gas, state-owned companies have logged stellar buying with oil marketing companies (OMCs) like HPCL, Indian Oil, ONGC and Gail skyrocketing to new levels. The benchmarks heavyweight Reliance Industries (RIL) had also clocked a new lifetime high, however, has erased its gains and was trading lower.
At around 12.11 PM, the Nifty Oil & Gas was trading at 8,095.55 higher by 59.55 points or 0.7%. The index has touched a new historic high of 8,161.45 in the early deal.
Oil giants that have clocked new 52-week highs on Wednesday are – ONGC (Rs172.75 per piece), Gail India (Rs171.30 per piece), Indian Oil (Rs134.90 per piece), HPCL (Rs317.95 per piece) and RIL (Rs2,619.95 per piece). These stocks have only extended their record levels this week.
Castrol India was the top gainer soaring 4.1%. ONGC followed by surging 3.4%.
BPCL gained 1.8% while Oil India and GSPL zoomed 1.6% each. Stocks like Gail and Gujarat Gas advanced more than 1% each.
Indian Oil climbed 0.8%, while Adani Total Gas jumped 0.6%. MGL traded marginally up, while MRPL performed flat.
On the contrary, Petronet LNG contracted by more than 1% and emerged as the top bear. IGL and RIL followed with 0.6% and 0.5% downside. HPCL dipped marginally.
On the global front, the US crude futures have reached the highest level since 2014. The US WTI has reached over $79 per barrel.
Meanwhile, the Brent Crude surged to 3-year highs. The futures have clocked over $82.5 per barrel level.
The OPEC+ has agreed on their usual production adjustment plan where 400,000 barrels per day would be added in November this year.
In the latest development, Saudi Arabia which is one of the largest oil producers in the world has announced a reduction in all crude prices that are destined to its biggest market, Asia after the OPEC and allies decision.
So far this year, oil prices have skyrocketed more than 50% that has fueled inflationary pressures worries.
Also, with natural gas prices spiking hysterically in major economies from Europe to Asia, it is being expected that crude prices levels will witness support as the gas prices upside would mean a switch to crude.