ONGC, Oil India share price hit new 52-week high, jump 5% amid higher crude oil prices

The shares of state-owned oil production companies Oil Natural Gas Corporation (ONGC) and Oil India has hit a new 52-week high after surging for over 5 per cent each on the BSE intraday on Wednesday on the back of higher crude oil prices and natural gas hitting a new 7-year high.

Brent crude oil rose 39 cents, or 0.5 per cent, to $73.99 a barrel in early trade: PTI

The shares of state-owned oil production companies Oil Natural Gas Corporation (ONGC) and Oil India has hit a new 52-week high after surging for over 5 per cent each on the BSE intraday on Wednesday on the back of higher crude oil prices and natural gas hitting a new 7-year high.

ONGC grew 5.4 per cent to Rs 130.65 per share, crossing it earlier high of Rs 128.45 touched on June 15, 2021. While Oil India jumped 5.2 per cent to Rs 208.8 apiece on the BSE intraday trade.

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According to a Reuters report, Crude oil prices climbed on Wednesday after industry data showed a larger than expected drawdown in crude oil stocks in the United States, the world's largest oil consumer, and on expectations that demand will recover as vaccine roll-outs widen.

Brent crude oil rose 39 cents, or 0.5 per cent, to $73.99 a barrel in early trade, while US West Texas Intermediate (WTI) crude climbed 44 cents, or 0.5 per cent, to $70.90 a barrel, it added.

ONGC has outperformed the market by surging 9 per cent in the last one week, after rating agency ICRA assigned 'AAA' credit rating for non-convertible debentures (NCDs) of the company for Rs 7,500 crore while reaffirming ratings of long-term and short-term facilities with stable outlook.

The rating reaffirmation takes into account the dominant market position of ONGC in the domestic crude oil and natural gas production business with large proven reserves, globally competitive cost structure, stable performance of its subsidiaries and its healthy financial position.

ONGC shares have been surging around 4 per cent to Rs 128.8 per share, while Oil India grew by over 3 per cent to Rs 205 per share on the BSE, as compared to 0.47 per cent rise in the S&P BSE Sensex at around 12:10 pm on Wednesday.

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