ONGC share price climbed more than 2% in early deals on Thursday, 10 September, in an otherwise weak market. Shares of Oil and Natural Gas Corporation (ONGC) opened at ₹236.30 against their previous close of ₹233.80 and rose 2.6% to an intraday high of ₹239.85 on the BSE. On the other hand, market benchmark Sensex slipped by more than 60 points in early trade.
ONGC shares are rising today amid a surge in crude oil prices driven by escalating tensions between the US and Iran. Brent crude now trades above $101 per barrel as hopes of a deal between Washington and Tehran are dashed amid fresh fights between them.
A rise in crude oil prices is generally positive for ONGC because it is primarily an upstream oil and gas producer. ONGC sells the crude oil it produces, so a higher selling price can directly increase its revenue and profitability if production volumes remain stable.
ONGC shares are witnessing decent buying this month; it has gained 3% in September so far after a 4% fall in August.
Year-to-date, the stock is flat compared to a 12% fall in the Sensex. It plumbed a 52-week low of ₹227.60 on 30 June after hitting a 512-week high of ₹307.50 on 29 April.