2024-04-25 20:48:43
New Delhi: Crude oil prices have strengthened after the Iran-Israel tension. In the international market, Brent crude and US West Texas Intermediate crude (WTI) are trading around $ 90 and $ 85 per barrel. Increase in oil price has many effects. The recent surge in prices is directly linked to the rising tensions between the two countries. Fluctuations in oil prices can have different effects. A rise in prices could potentially benefit the performance of some stocks. Come, let us know about 5 such stocks here.
1. ONGC
The profitability of public sector company ONGC may be affected by international crude oil prices. Mainly due to the contribution of its subsidiary ONGC Videsh Limited to the overall production. The increase in crude oil prices is expected to have a positive impact on the company’s profitability. This can increase its revenue. The stock ended the week on a positive note. However, the stock closed 0.13 per cent down at Rs 276.70 on BSE on Tuesday.
2. Indraprastha Gas
Indraprastha Gas Limited is a leading gas distributor company. Rising prices of crude oil may increase prices of petrol and diesel. Due to it being more economical, people can shift towards Compressed Natural Gas (CNG). On Tuesday, this share closed at Rs 447.90 with a rise of 2.32 percent on BSE.
3. Oil India
Public sector company Oil India Limited (OIL) is a major company in the oil exploration and production industry. The company’s income may increase with the increase in crude oil prices. This is likely to potentially increase its margins. On Tuesday, the stock closed at Rs 590.95 with a decline of 0.99 per cent on BSE.
4. Petronet LNG
Petronet LNG is a supplier of LPG, CNG and PNG. The prices of LNG (Liquefied Natural Gas) are directly affected by the rise or fall in crude oil prices. However, there is some time lag. Time lag helps the company to improve receivables and thus operating profit. Increase in crude oil increases the sales of LNG or Liquefied Natural Gas. On Tuesday, the stock closed at Rs 295.35, down 0.81 per cent, on the BSE.
5. Engineers India
Engineers India is a major player in the civil engineering industry. The company focuses on engineering consultancy and EPC services. The company has the capability to manufacture pumping and compressor stations for handling crude oil, petroleum products (single and multi product) and slurries. It also has the potential to build long-distance cross-country and submarine pipeline schemes for transportation to metering and regulating stations. Thus it may indirectly benefit from the rise in crude oil prices. On Tuesday, the stock closed at Rs 207.85 with a decline of 0.76 per cent on BSE.