The Oil & Gas stocks are in focus in Monday’s trade after the Brent crude oil prices are near the $60 a barrel mark while that of US WTI crude oil prices dropped below $60/barrel. The Indian companies that are in the business of refining crude oil and making petroleum products will be affected by it.
The fall in crude oil prices came after the reciprocal tariffs that US President Donald Trump imposed on its trade partners are likely to hurt oil demand, and may continue for a longer duration. Trump has triggered a global trade war, which may push economies towards a risk of recession.
The International Monetary Fund’s chief, Kristalina Georgieva, said the tariffs are a threat to global economic growth. “We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth,” said Georgieva. “We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty.”
The Indian Oil & Gas companies like Reliance Industries, ONGC, Oil India, Indian Oil Corporation, Bharat Petroleum, etc to remain in focus today.
Shares of Reliance Industries had fallen 3.5% in the previous session, ONGC’s scrip corrected over 7%, Oil India plunged 6.8%, Bharat Petroleum shares lost 2.3%, and many others also lost in Friday’s trade.
The Nifty Oil & Gas index, a basket of oil & gas stocks, declined 3.78% in the previous session. The index has fallen almost 4% in the last one week. However, the index has given a return of 3.5% in the last one month. It has declined by 5.5% in the previous 3 months.
“Adding to the downward pressure, OPEC+ unexpectedly agreed to increase output to 411,000 barrels per day from May, a substantial jump from the previously planned 135,000 barrels. The combination of rising supply and concerns over weakening global demand—particularly from trade disruptions—continues to weigh heavily on crude oil prices. We expect crude oil prices to remain volatile in today’s session,” said Rahul Kalantri, Vice President of Commodities at Mehta Equities.