Authored by : ET Now Digital Updated Apr 21, 2024 | 01:31 PM IST Photo : ET Now Digital Israel-Iran War: The price rise comes on the back of rising tensions between Israel and Iran.
The price rise comes on the back of rising tensions between Israel and Iran.
Oil India Public sector company Oil India Ltd. (OIL) is a major player from the Oil Exploration & Production industry.
The company’s earnings can increase with an increase in crude oil prices which could directly increase the margins of the company.
The prices of LNG(Liquified Natural Gases) are directly impacted by a rise or fall in crude oil prices, though with a time lag.
Authored by : ET Now Digital Updated Apr 21, 2024 | 01:31 PM IST Photo : ET Now Digital Israel-Iran War: The price rise comes on the back of rising tensions between Israel and Iran.
(Pic: Shutterstock/ET NOW News)
Israel-Iran War: Oil prices are on the rise, as of April 19, Brent crude and US West Texas Intermediate crude (WTI) both traded above $90 and $85 per barrel, respectively in Asian trade. A rise in the price of oil has a multitude of effects. The price rise comes on the back of rising tensions between Israel and Iran. Multiple reports suggest that Iran fired over 300 projectiles on Israel in an apparent retaliation for a deadly strike on its consulate in Damascus, Syria.
One of the many ways fluctuations in oil prices impacts people is the way a price rise could potentially benefit the performance of some stocks according to a report by the Economic Times which cited data rooted from StockEdge, these counters shares of these companies can benefit from a jump in crude oil prices:
ONGC Public sector company ONGC’s profitability can be impacted by international crude prices due to its subsidiary ONGC Videsh Limited’s contribution to overall production. The role of the PSU subsidiary thus makes the company sensitive to any fluctuation in the WTI Crude price movement. A rise in crude oil price is likely to have a positive impact on the company’s profitability on the back of higher realizations from its revenues. The stock closed in the green on Friday at Rs 275.15 apiece on the BSE, up by 0.31 per cent.
Indraprastha Gas Indraprastha Gas is a major distributor of gas. It is possible that higher crude oil prices could increase petrol and diesel prices which could lead to a shift towards compressed natural gas (CNG) due to it being more economical. The stock closed in the red on Friday at Rs 275.15 apiece on the BSE, down by 0.38 per cent.
Oil India Public sector company Oil India Ltd. (OIL) is a major player from the Oil Exploration & Production industry. The company’s earnings can increase with an increase in crude oil prices which could directly increase the margins of the company. The stock closed in the red on Friday at Rs 600.30 apiece on the BSE, down by 0.44 per cent.
Petronet LNG Petronet LNG is a supplier of LPG,CNG and PNG. The prices of LNG(Liquified Natural Gases) are directly impacted by a rise or fall in crude oil prices, though with a time lag. The time lag helps the company in improving the realizations and thus, the operating profits. Rise in crude increases sales of LNG or liquefied natural gas. The stock closed in the red on Friday at Rs 299.30 apiece on the BSE, down by 0.78 per cent.
Engineers India Engineers India is a player in the civil engineering industry. The company is focused on engineering consultancy & EPC services. The company has capabilities to plan and execute long-distance cross-country and submarine pipelines for the transportation of crude oil, petroleum products (single and multi-product), two-phase fluids and slurries including pumping and compressor stations and metering and regulating stations, thus it could benefit from a rise in crude oil prices indirectly. The stock closed in the red on Friday at Rs 204.70 apiece on the BSE, down by 1.37 per cent.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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