Oil explorers rally as crude boils

Shares of two state-run oil explorers rose by 1.9% to 7.86% amid soaring crude oil prices.

ONGC (up 1.90%) and Oil India (OIL) (up 7.86%) jumped.

In the commodities market, Brent crude for August settlement was up 0.32% at $123.97 a barrel. It has jumped 59.39% so far in calendar year 2022.

Higher crude oil prices boost oil explorers' average realisation from every barrel of the oil sold.

Shares of OIL hit a 52-week high of Rs 303.55 today.

In the past one month, the stock has surged 27.74% as against 0.73% rise in the Sensex. It has jumped 114.09% in the past one year compared with 5.65% increase in the Sensex.

Shares of ONGC hit a 52-week high of Rs 194.60 on 8 March 2022.

In the past one month, the stock rose 1.12% as against 0.73% increase in the Sensex. It has jumped 34.30% in the past one year compared with 5.65% rise in the Sensex.

Meanwhile, Mangalore Refinery & Petrochemicals (MRPL) rose 4.36% and Chennai Petroleum Corporation (CPCL) advanced 0.92%.

The stocks of these two petroleum refining rose amid optimism that surge in crude oil prices may boost their profitability.

MRPL, a subsidiary of ONGC, is Category 1 Miniratna Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas. The refinery has flexibility to process crudes of various API, delivering a variety of quality products. As on 31 March 2022, Oil and Natural Gas Corporation (ONGC) held 71.63% stake in the company.

CPCL operates in downstream petroleum sector. It produces an array of value-added petroleum products.

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