Shares of oil majors RIL, BPCL, IOC plunged up to 3% on Monday morning, after a strike on a Saudi Arabian oil facility on Saturday removed about 5% of global supplies.
Shares of oil majors RIL, BPCL, IOC plunged up to 3% on Monday morning, after a strike on a Saudi Arabian oil facility on Saturday removed about 5% of global supplies. RIL shares slumped more than 3% to hit Rs 1,188.50 on BSE. BPCL shares are down more than 5.5% to Rs 386.10 on NSE, while IOC shares are down 2.6% to Rs 127.60 to emerge among the biggest losers in Nifty. Global oil prices surged the most in 28 years On Monday morning. Brent futures jumped almost $12 a barrel in the seconds after the open on Monday, the biggest intraday advance in dollar terms since they were launched in 1988, a Bloomberg report noted. On the New York Mercantile Exchange, West Texas Intermediate contracts were frozen for about two minutes after the scale of the move delayed the market open, added the report.
Taking stock of the development, Pritam Kumar Patnaik, Head Commodities, Reliance Commodities said that the Drone attack on Saudi Aramco oil facilities on Saturday is estimated to impact 5 mln bpd of oil production and further news that Saudi Arabia plans to shut down about half of it’s output after strike will have impact on the overall oil prices and global economy. “The impact of the same has been already witnessed on both NYMEX and Brent oil prices, which have rallied more than 10%. “With USA accusing the Iranian government of orchestrating the attack and Iran in turn threatening war, there by further destabilising the region at large and further impacting future supplies, the oil prices are expected to remain firm,” he added.