ONGC, Oil India shares jump up to 7% as rising US-Iran tensions push oil prices higher; HPCL, BPCL fall up to 4%

Oil stocks

• ONGC and Oil India shares surged as crude oil prices rose.
• HPCL, BPCL, and IOC shares fell amid oil price volatility.
• Oil prices rose due to US-Iran tensions and supply concerns.

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The shares of oil refiners ONGC and Oil India gained on February 19 as crude oil prices rose amid rise in global geopolitical tensions. The shares of oil marketing companies (OMC) however plunged in trade.

The shares of Oil & Natural Gas Corporation (ONGC) jumped 4.5 percent to trade at Rs 276.45 apiece, while Oil India shares surged more than 7 percent to trade at Rs 485.8 apiece.

Hindustan Petroleum Corporation Limited (HPCL) shares meanwhile fell more than 4 percent to trade at Rs 437.2 apiece, while Bharat Petroleum Corporation (BPCL) shares dropped over 3 percent. Indian Oil Corporation (IOC) shares fell over 2 percent.

Why are oil prices rising?

Oil prices increased amid rising tensions between US and Iran. "Oil prices are rallying as the market becomes increasingly concerned over the potential for imminent U.S. action against Iran," Reuters quoted ING analysts as saying. "For oil markets, the concern is clearly what action would mean not only for Iranian oil supply, but also broader Persian Gulf oil flows, given the risk of disruption to shipments through the Strait of Hormuz,” they added.

Iran is quickly shielding key nuclear facilities beneath concrete and earth, turning them into hardened bunkers as US military presence in the region increases, according to satellite analysis by the Institute for Science and International Security (ISIS).

This comes as the US has deployed a significant number of fighter jets and support aircraft to the Middle East.

Brent futures climbed 71 cents, or 1.01 percent to $71.06 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 69 cents, or 1.06 percent to trade at $65.88 a barrel, as seen at 3.15 pm IST.

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