Energy stocks – ONGC, Oil India, MRPL, gain up to 7% on higher crude oil prices; What should investors know?

Shares of energy companies such as Oil and Natural Gas Corporation (ONGC), Oil India, Mangalore Refinery & Petrochemicals (MRPL) and Chennai Petroleum Corporation gained up to 7 per cent on the BSE intraday on Wednesday, as the crude oil price rises on possible output cut by Saudi Arabia. 

The crude oil prices surged by nearly 4 per cent on Tuesday after Saudi Arabia floated the idea of OPEC+ output cuts to support prices in the case of returning Iranian crude and with the prospect of a drop in US inventories, according to a news agency Reuters report. 

Global benchmark Brent crude settled at $100.22 a barrel, up $3.74, or 3.9%. US West Texas Intermediate crude closed $3.38, or 3.7%, higher at $93.74 a barrel. At around 02:15 PM IST, Brent crude was quoted at $ 99.6 a per barrel, up 1.44 per cent. US WTI futures were up 1.4 per cent at $93.3. 

Individually, Chennai Petroleum shares gained most up by around 7 per cent to Rs 327.2 apiece on the BSE and NSE, intraday. The company Tuesday also signed a joint venture with Indian Oil Corporation and other seed investors for implementing a refinery project at Cauvery Basin. 

Meanwhile, MRPL shares gained over 5 per cent to Rs 76.4 per share, followed by Oil India shares up nearly 4 per cent to Rs 192.25 and ONGC shares up around 3 per cent to Rs 137.35 per share on the BSE intraday.