(BS)
Shares of state-owned upstream oil companies Oil and Natural Gas Corporation (ONGC) and Oil India dipped up to 6 per cent on the BSE in Wednesday’s intra-day on profit booking as crude oil prices were trading near three years low on concerns over a weak demand outlook.
Shares of Oil India have dipped 6.4 per cent to Rs 570 on the BSE in intra-day trade. With today’s decline, the stock has fallen 26 per cent from its record high level of Rs 767.30 that it touched on August 30. Separately, the stock price of ONGC was down nearly 3 per cent to Rs 287.30. The company’s stock has declined 17 per cent from its all-time high level of Rs 344.60 that it hit on August 1.
Recent global developments leading to ample supplies amid weaker demand prospects have pushed Brent oil prices below $70 per barrel.
While upstream earnings are currently impacted, with the Organization of the Petroleum Exporting Countries (OPEC+) delaying its planned rise in production, analysts at Prabhudas Lilladher expect oil prices to rebound to $75-80 per barrel in the near term.
Analysts at the brokerage firm noted that net oil realisation should bounce back to around $75 per barrel. Additionally, Administered Pricing Mechanism (APM) price is set to rise in FY26E and gas produced from new wells would attract premium pricing, they added. These bode well for upstream players, the analysts said in their oil and gas sector update.
While upstream earnings are currently impacted, with the Organization of the Petroleum Exporting Countries (OPEC+) delaying its planned rise in production, analysts at Prabhudas Lilladher expect oil prices to rebound to $75-80 per barrel in the near term.
Analysts at the brokerage firm noted that net oil realisation should bounce back to around $75 per barrel. Additionally, Administered Pricing Mechanism (APM) price is set to rise in FY26E and gas produced from new wells would attract premium pricing, they added. These bode well for upstream players, the analysts said in their oil and gas sector update.
