ONGC, Oil India gain; BPCL, IOC, HPCL dip as oil hits six-week high

Shares of oil exploration and production companies such as Oil and Natural Gas Corporation (ONGC), Oil India, Aban Offshore, Jindal Drilling & Industries, Hindustan Oil Exploration Deep Industries and Selan Exploration Technology Company have rallied by up to 16% on the BSE in intra-day trade after oil hit a six-week high on Wednesday.

Brent crude futures were up $1.73, or 2.6%, at $69.15 per barrel by 12:50 a.m. EDT (1650 GMT). Brent has risen by nearly 12% since hitting a two-month low of $61.77 in early February, the Reuters report suggested.

Data released by the U. S.

Energy Information Administration (EIA) on Wednesday morning showed a surprise 2.6 million barrel draw in crude inventories. Analysts had expected a 2.5 million barrel build, it added.

Higher crude prices will result in higher realisation for these oil exploration companies and result in increased profitability for them.

Meanwhile, shares of oil marketing companies like Indian Oil Corporation (IOC) hit a fresh 52-week low of Rs 170, down 1%, extending its past 15% days fall on the BSE. Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) were down 2% to 3%. On comparison, the S&P BSE Sensex was trading 0.36% higher at 33,256 at 10:38 am.

Oil and Natural Gas Corporation Limited (ONGC)