Shares of state-owned oil producers Oil and Natural Gas Corp (ONGC) and Oil India rose on Wednesday as international crude prices climbed above the $100 per barrel mark amid escalating tensions in the Middle East.
ONGC shares gained nearly 2%, while Oil India advanced around 2.4%, supported by expectations that higher crude prices could improve revenue and margins for upstream exploration companies.
Brent crude prices crossed the key level after a fresh escalation in the US-Iran conflict raised concerns over oil supply disruptions.
Crude rally boosts upstream companies
Brent crude futures were trading near $101.10 per barrel, while US West Texas Intermediate crude stood around $96.24 per barrel. Analysts said sustained geopolitical risks could keep prices elevated as uncertainty grows over oil flows through the Strait of Hormuz.
The conflict has affected shipments through the Strait of Hormuz, a critical energy route that previously carried a significant share of global oil and gas supplies. Analysts said disruptions to Gulf exports are adding a geopolitical risk premium to crude prices.
Higher crude prices are a concern for India, which imports nearly 90% of its crude oil requirements. Rising energy costs could increase the country’s import bill, fuel inflation and put pressure on economic growth.
Oil market participants are also monitoring alternative supply routes and inventory levels as uncertainty persists. The US Energy Information Administration has raised its oil price forecasts for the current and next year, citing declining global stockpiles due to reduced Middle East supply.
With physical crude benchmarks already trading above $100 per barrel, investors are closely watching whether prolonged tensions could push prices higher.
