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Shares of state-run ONGC and Oil India surged up to 10% mirroring a sharp rally in global crude prices driven by fresh supply concerns
Crude Oil Prices Rise
Oil Prices Rise: Shares of state-run Oil & Natural Gas Corporation (ONGC) and Oil India surged up to 10% on January 28, mirroring a sharp rally in global crude prices driven by fresh supply concerns. A severe winter storm in the US disrupted crude production and exports, tightening near-term supply.
Oil prices were also supported by escalating tensions in the Middle East. Brent crude futures rose 33 cents to $67.90 a barrel, while WTI crude gained 42 cents to $62.81 per barrel as of 11 am.
Both stocks featured among the top gainers on the Nifty Oil & Gas index, which climbed over 3% to 11,735.55.
Why are oil prices rising?
Crude extended gains after analysts estimated US producers lost as much as 2 million barrels per day — roughly 15% of national output — over the weekend, as the storm strained energy infrastructure and power grids.
Exports of crude and liquefied natural gas from US Gulf Coast ports dropped to zero on Sunday, ship-tracking firm Vortexa told Reuters. The report also cited Toshitaka Tazawa of Fujitomi Securities, who noted that production losses in Kazakhstan are adding to supply concerns.
However, Tazawa cautioned that selling pressure could return once supply fears ease. He added that expectations of a global crude surplus this year, despite geopolitical risks such as Middle East tensions, may keep WTI prices near $60 per barrel.
Tensions between the US and Iran are also underpinning prices. Reuters, citing sources, reported that a US aircraft carrier and supporting warships have reached the Middle East, raising the possibility of military escalation. ANZ analysts said this has heightened fears that US President Donald Trump could act on threats against Iran’s leadership following unrest there.
ONGC share price
ONGC shares rose over 7% to a fresh 52-week high of Rs 266.2. The company recently announced shipbuilding contracts with South Korea’s Samsung Heavy Industries to construct two advanced Very Large Ethane Carriers (VLECs).
ONGC and Japan’s MOL have formed two joint ventures — Bharat Ethane One IFSC Pvt. Ltd. and Bharat Ethane Two IFSC Pvt. Ltd. — in GIFT City, Gujarat, with each entity set to own and operate one VLEC. The vessels will transport around 600 KTPA of ethane for ONGC subsidiary OPaL.
The Indian-flag VLECs will each have a cargo capacity of 100,000 cubic metres.
ONGC stock has gained nearly 9% in the past five days and over 12% in the last month.
Oil India share price
Oil India shares jumped nearly 10% to a new 52-week high of Rs 492. The stock has advanced more than 11% over the past five days and over 18% in the last month.
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January 28, 2026, 12:35 IST
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