Shares of Oil India has skyrocketed over 17 percent in just 2 sessions on the back of surging crude oil prices. Oil prices extended their rally on Thursday, with Brent rising above $116 a barrel, as trade disruption and shipping issues from Russian sanctions over the Ukraine crisis sparked supply worries while U.S. crude stocks fell to multi-year lows.
The Organization of the Petroleum Exporting Countries and their allies including Russia have decided to maintain an increase in output by 400,000 barrels per day in March despite the price surge, ignoring the Ukraine crisis during their talks, reported Reuters.
Brent crude futures rallied to $116.83 a barrel, the highest since August 2013. The contract was at $116.60 a barrel, up $3.67 by 0112 GMT. U.S. West Texas Intermediate crude was at $113.01 a barrel, up $2.41 after touching a fresh 11-year high of $113.31 a barrel.
The International Energy Agency (IEA) has also agreed to release 60 million barrels of oil from emergency stockpiles. However, news of that release did not soothe investor fears the growing tensions between Russia and Ukraine will keep the supply inadequate.
Back home, Oil India rose as much as 7.1 percent in intra-day deals today to its day's high of ₹261.95 per share on the NSE. In comparison, benchmark Nifty was up around 0.3 percent and the Nifty Energy added 1.8 percent in intra-day deals.
The stock has jumped over 17 percent in just 2 sessions as the surge in oil prices is likely to boost the company's overall profitability.
Oil India Limited is an India-based integrated exploration and production company in the upstream sector, which is engaged in providing crude oil and natural gas. The Company's segments include Crude Oil, Natural Gas, LPG, Pipeline Transportation, Renewable Energy and Others. The Company also produces liquefied petroleum gas (LPG) and transports crude oil and refined petroleum products through cross-country pipelines.