ONGC, Oil India Extend Gains as Crude Oil Prices Climb on US-Iran Tensions

Oil and Natural Gas Corporation (ONGC) and Oil India shares extended gains on Thursday as crude oil prices continued to rise in the commodity market. Escalating tensions between the US and Iran contributed to the surge, heightening concerns over prospective supply disruptions from the Middle East. According to a Reuters report, oil prices rose to their highest level in over two months.

Brent crude futures climbed by 0.2% or 15 cents to $69.92 per barrel before easing back some gains. WTI crude followed suit. At 11:45 am, ONGC shares were trading at ₹249.77 price level, up by nearly a per cent on the National Stock Exchange.

Oil India shares climbed by around 2% on the bourses, trading at ₹474.40 price level.

Earlier this week, President Trump reportedly said that the US personnel were being moved out of the Middle East as "it could be a dangerous place." Trump also stated that the US will not allow Iran to have a nuclear weapon.

Meanwhile, the US is already on high alert amidst escalating tensions between Israel and Iran. According to a report by the Washington Post, the Trump administration fears that Israel might strike Iran's nuclear sites without US approval if talks between Washington and Tehran over Iran’s nuclear program fail.

ONGC & Oil India Share Price

So far this year, ONGC shares have remained largely range-bound, albeit in the green territory. The PSU's stocks witnessed a single-digit rise of 5.33% on the NSE. However, over the last 6 months period, ONGC shares have remained in red.

Whereas, Oil India Ltd. shares have surged over 8% on year-to-date basis. On an annual basis, the trajectory of the stock price has remained quite volatile. Over the past six months, the Nifty Oil & Gas index has risen by more than 4.44%, outperforming the Nifty 50, which gained nearly 2% during the same period.