As Crude Oil Prices Fall 5%, ONGC, Oil India Stocks witness Up To 10% Correction

Stocks of Oil India Ltd and Oil and Natural Gas Corporation (ONGC) witnessed a sharp decline up to 10% as price of Brent crude tumbled by more than 5 percent. In the last two days, the price of Brent crude oil have registered a dip of approximately 10% on the back of growing worries about global demand for the commodity.

Additionally, speculations are rife about recession in the European Union and United States for the coming 12 months. Also, demand have slumped in China which has consequently dashed hopes of traders for the commodity in spite of continuous supply side problems.

According to experts, the growth momentum is slowing at a rapid pace and US Federal Reserve seeks to bring back stability in price. A slight recession may set in Q4 2022 and its possibility is only increasing now.

Having said that, the world crude oil prices are still 42% higher this year amid worries that supply may continue to stay tight on the back of sanctions imposed on Russian oil be West. The surging oil prices pushed the performance of ONGC and Oil till this time in 2022. Amid all this, today the share prices of both ONGC and Oil India witnessed sharp correction.

The current market price of Oil India is Rs 227 apiece and it witnessed a decline of 10.86% today at the close. It has fallen 25% from its highs. Meanwhile, the current market price of ONGC is recorded at Rs 134 apiece with a decline of 4.98% at the close today.

According to reports, there might be a sharp rise in domestic natural gas price during the September review and the move is expected to improve Oil India and ONGC's earnings considerably.