ONGC up 6% led by rising international crude prices

ONGC up 6% led by rising international crude prices

 Shares of upstream companies on Friday surged after international crude oil prices jumped over 10%. Rise in crude price helps increase revenues of these companies.

State-run Oil and Natural Gas Corp. Ltd (ONGC) touched a high of Rs.245.80 apiece and rose as much as 6.5%, the highest gains since 4 May 2015. Cairn India Ltd gained 7.8% to Rs.150.50, Gail India Ltd rose 3.9% to Rs.291.85 and Oil India Ltd rose 3.1% to Rs.469.70.

Offshore drilling services provider Aban Offshore Ltd gained over 11% to Rs.265.75.

However, oil marketing companies fell. Bharat Petroleum Corp. Ltd (BPCL) fell 2.1% to Rs.863.85 and Hindustan Petroleum Corp. Ltd (HPCL) fell 0.2%.

BPCL turned ex-dividend for Rs.22.50 a share today.

Crude oil futures rose on Friday, adding to their biggest one-day rally in over six years the day before, led by recovering equity markets and news of diminished crude supplies, Reuters reported.

Overnight, oil rocketed more than 10% on Thursday, posting its biggest one-day rally in over six years as recovering equity markets and news of diminished crude supplies set off a short-covering scramble by bearish traders, a Bloomberg report said.

Snapping back from a deep two-month slump that knocked US crude to six-and-a-half-year lows, below $40 this week, oil climbed as the world stock markets rose on hopes that Chinese government’s measures to stimulate the economy would pay off, while the dollar strengthened as risk aversion eased, it added.

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