Shares of oil & gas companies were trading higher in an otherwise subdued markets after crude oil prices surged in international markets. The gauge of oil & gas shares on the BSE – S&P BSE Oil & Gas index was the top sectoral gainer on the BSE, up 2.15 per cent with the state-run oil explorer ONGC being the top gainer. ONGC shares rose as much as 8.23 per cent to hit fresh 52-week high of Rs 159.75. Among other shares, on the Oil & Gas index – Indian Oil advanced 2.5 per cent, Gujarat Gas gained 2.44 per cent, GAIL India rose 2 per cent, Hindustan Petroleum advanced 1.88 per cent, Adani Total Gas advanced 2.2 per cent, Oil India climbed 2 per cent and Indraprastha Gas up 0.96 per cent.
Oil prices climbed on Tuesday, hitting their highest levels in at least three years, extending gains triggered during the previous session after the world’s major oil producers announced they had decided to keep a cap on crude supplies.
Brent crude was up by 40 cents or 0.5 per cent at $81.66 a barrel by 9:10 am, having risen 2.5 per cent on Monday. West Texas Intermediate (WTI) oil rose 30 cents or 0.4 per cent to $77.92, after gaining 2.3 per cent the previous session.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, collectively known as OPEC+, said on Monday it would maintain an agreement to increase oil production only gradually, ignoring calls from the United States and India to boost output as the world economy recovers, if patchily, from the coronavirus pandemic.
Oil prices have already surged more than 50 per cent this year, a rise that has added to inflationary pressures that crude-consuming nations are concerned will derail recovery from the pandemic.
As of 12:00 pm, oil & gas shares were trading firmly higher with the index up 2 per cent.