Oil India, ONGC, GAIL, To Petronet: Why Oil And Gas Stocks Are Rising Today? All You Need To Know

Oil India, ONGC, GAIL To Petronet: Shares of oil and gas companies like Oil India Limited, ONGC, GAIL, Petronet, Hindustan Petro, Indian Oil Corporation, etc, surged during Wednesday's intraday trading session. The sharp surge in oil and gas stocks came as the crude oil prices jumped to record high amid supply concerns of US crude supply.

OIL shares were trading 9.35% higher, ONGC shares were trading 7.89% higher, GAIL share were trading 4.64% higher in the last trading hours of Wednesday's trading session.

Why Oil & Gas Stocks Are Rising Today?

The sharp surge in oil and gas stocks reflected the massive jump in crude oil prices on Wednesday. The sharp surge in crude oil prices was the result of supply side concerns.

"Oil & Gas stocks on the Nifty are rallying today because global crude prices climbed strongly on renewed supply concerns and heightened geopolitical risk. A severe winter storm in the U.S. has disrupted production and exports, while ongoing tensions in the Middle East are keeping risk premiums elevated in energy markets. These factors have pushed international benchmarks higher, prompting buying interest in energy names," explained Tushar Badjate, Director of Badjate Stock & shares Pvt Ltd.

The recent movement in the oil and gas stocks is driven by market's focus on supply side tightness and diversification. "Companies like Hindustan Petroleum are exploring new crude sources such as Venezuelan oil following upgrades to their heavy oil processing capacity, reflecting broader efforts to diversify supply and capture value as market dynamics shift. While Venezuelan crude is heavier and more complex to refine, recent refinery investments could help Indian refiners make use of these grades effectively," Badjate added.

Both ONGC and Oil India ranked among the strongest performers on the Nifty Oil & Gas index during the session. The sector gauge rose more than 3 % by 11 am. Brent crude futures traded at $67.90 a barrel, up 33 cents. WTI crude futures gained 42 cents to $62.81 per barrel.

WTI crude oil futures remained close to $62 per barrel on Wednesday after a 3% surge in the previous session. The sharp surge fuelled the crude oil futures prices to four-month high, according to Trading Economics.

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