New Delhi, 16 June (IANS). Due to the rise in crude oil prices, shares of the country’s major crude oil producing companies Oil India and Oil and Natural Gas Corporation (ONGC) have increased by 10 percent in the last five trading sessions.
The share of Oil India, a crude oil -producing company, has increased by 10.15 percent in the last five trading session.
The share of ONGC, the country’s other major crude oil producing company, has increased by 5.06 percent in the last five trading sessions.
On Friday, ONGC stock climbed 1.88 percent to close at Rs 256 on the National Stock Exchange (NSE). At the same time, Oil India shares closed at Rs 479 with a slight rise of 0.25 percent on NSE.
Since the air strike on Iran from Israel on 13 June, the rise in crude oil prices has been seen and it has become about 7 percent expensive since then. On June 12, the price of Brent crude was $ 69.36 per barrel and WTI crude was priced at $ 66.64 per barrel.
After the big rally, crude oil is seen softening in the international market. In the evening, Brent crude dropped by 1.27 percent to $ 73.29 per barrel and WTI crude 1.29 percent to $ 70.38 per barrel.
The reason for the rise in crude oil is the increase in conflict between Israel and Iran, which can affect supply.
According to a report by MK Global, Iran produces around 3.3 million barrels (MBPD) per day and exports about 1.5 MBPDs, with China with 80 percent of the main importer. Iran is also on the northern edge of the hormuz Strait, through which more than 20 MBPD oil is traded in the world.
Hormuz Strait is a choke point in the Middle East. Saudi Arabia and UAE etc. are also shipping through this route and Iran has warned to close it earlier.
-IANS
ABS/
