Crude oil prices rallied to an 18-month high on Tuesday, backed by hopes that crude production cuts agreed to last year will help drain global surplus and stabilise the market in 2017.
Hence, the S&P BSE oil and gas index began the year with a 1.97% rise on Tuesday, with Brent prices more than doubling from its previous year low. Oil prices have been gaining after an OPEC agreement in November. The BSE oil and gas index rose 1.97 % at 12,458.97. Mahanagar Gas, Indraprastha Gas and Indian Oil Corp are among 21 stocks from the BSE500, Nifty 500 and small-cap index hitting their respective 52-week highs on Tuesday in intra-day trade.
Mahanagar Gas ended 2.44% up at R821.90. The stock rallied 6% in past two trading sessions after the company, in association with Eco Fuel, announced the launch of CNG fuelled two-wheelers in Mumbai. Hindustan Petroleum Corp ended 3.33% higher at R464 after the company announced to invest R1,200 crore in city gas distribution (CGD) to expand network and build infrastructure
Oil India hit a fresh 52-week high intraday of R463, ahead of a bonus issue. The firm has fixed January 13 as the record date for ascertaining the eligibility of shareholders for the issuance of bonus shares in the ratio of 1:3. Indian Oil ended 5.79% higher after it submitted the shareholding pattern for the 2016 to BSE.
Brent crude, the global oil benchmark, rose 2.15% to $58.04 a barrel on London’s ICE Futures exchange, having earlier peaked at $58.37, its highest level since July 2015. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 2.25% at $54.94 a barrel.