ONGC, Oil India shares prices gain up to 5% on rising crude oil prices

Stock Market Today: ONGC and Oil India share prices gained up to 5% in the morning trade on Thursday, June 12, on a sharp rise in crude oil prices. The rising crude prices improve the outlook on the net realisations that the upstream oil producers earn.

Brent crude price surge

Crude oil prices have been rising with increasing geopolitical tensions in the Middle East. The Brent Crude price that had dipped to close to $60 a barrel levels ($61 a barrel level) in April has now risen to $69 a barrel levels.

“The spike in Brent crude to $70 is on heightened security risks in the Middle East. ONGC and Oil India can respond positively,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

The declining crude price had been a concern for ONGC and Oil India's earnings outlook. Thus, a rise is now improving investor sentiments.

For the past three months (till 23 May), the stock price of ONGC had been flat, underperforming benchmark Nifty Index (which was up 8%), due to a downtrend in oil price (which offset emerging visibility on growth in oil & gas production in the next three years), Elara Securities had observed.

ONGC's net realisation prior to the windfall tax had declined by around 9% year-on-year in the January-March 2025 quarter, with declining crude prices. Hence, any rise in crude price raises investor optimism on the earnings growth of the companies. To be sure, the crude prices need to sustain the higher levels.

ONGC and Oil India share price movement

Oil and Natural Gas Corporation or ONGC share price opened at ₹251.05 and surged to intraday highs of ₹255.15. This meant gains of more than 3% for the ONGC share price during the intraday trade.

Oil India share price opened at ₹473.05 and further rose to intraday highs of ₹488.80. This translated to gains of close to 5% for the Oil India share price in intraday deals today.

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