ONGC Stocks Move Up by More Than 2% Following Climb in Brent Oil Price Above $101 a Barrel

The stocks of ONGC have been showing an upward trend during early morning trading session on Thursday, September 10, despite the uncertainty prevailing in the overall market, due to another increase in the price of crude oil. At the same time, there is a tension arising between U.S. and Iran.  

The share opened at ₹236.30 in BSE market as compared to its last closing price of ₹233.80. Further increase was seen in the stocks of ONGC, moving up to 2.6%, as its highest price level of ₹239.85 was reached. 

This increase was witnessed amid the subdued early morning movement in the overall market with Sensex down by more than 60 points. 

Crude Oil Rally Puts ONGC Back in Focus 

The immediate backdrop for ONGC was the continued strength in international crude prices. 

Brent crude moved above $101 a barrel as fresh fighting between the U.S. and Iran reduced hopes of an agreement between the two countries. 

For an upstream producer such as ONGC, crude prices have a direct bearing on the value of the oil it sells. Higher selling prices can support revenue and profitability when production volumes remain stable. 

That relationship brought the stock back into focus on Thursday as crude extended its recent climb. 

ONGC Makes a Comeback From a Weak August 

The current rally also reflects the stock’s recovery till now in the month of September. 

So far, ONGC’s stock price has gained by about 3% for the month after it fell by 4% in the previous month. On a year-to-date basis, the stock is pretty much unchanged. 

This performance is still ahead of the market during the same time, which has fallen by around 12% year to date. 

Also, the stock has shown a wide trading range in the year. ONGC made a 52-week high of ₹307.50 on April 29 and then a 52-week low of ₹227.60 on June 30. 

With an intraday high of ₹239.85 on Thursday, the stock continues to trade above the low level seen in June but still below the April level. 

Crude became the dominant influence in determining the performance of ONGC for the early part of the session, especially as Brent climbed past $101 a barrel.