Oil & gas index surges nearly 3{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} amid a rally in oil prices; ONGC climbs 6{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654}

The S&P BSE Oil & Gas index surged approximately three for every cent to eleven,928.27 amounts in the intra-working day specials on Tuesday amid rise in crude oil price ranges on anticipations that fuel desire will begin to get better as some US states and nations in Europe and Asia commence to simplicity coronavirus lockdown actions.

The US benchmark West Texas Intermediate (WTI) crude futures rose as significantly as eight.two for every cent to a 3-week high of $22.06 for every barrel throughout the working day. It is on a five-working day gain streak that begun on April 29. Brent crude futures strike a high of $28.fifty seven a barrel and were being up for a sixth straight working day, Reuters described.

At ten:forty three am, the S&P BSE Oil & Gas index was ruling two.forty three for every cent increased at eleven,873.39 amounts. ONGC was the major gainer on the index – up above 6 for every cent at Rs eighty one.40 apiece on the BSE. Other main gainers on the index were being Hindustan Petroleum (HPCL), Bharat Petroleum Company (BPCL), Reliance Industries (RIL), and Indian Oil Company (IOCL) – all were being up in the selection of four to 1.five for every cent.

In comparison, the benchmark S&P BSE Sensex was investing 296 factors or approximately a for every cent increased at 32,011.31 amounts.

Immediately after a selection-certain couple of many years of crude price tag motion, the crude price tag (brent) has fallen sharply due to the fact early March 2020 and has fallen as very low as USD 19/bbl. The slide was induced on account of a provide glut in the industry by Saudi Arabia and Russia which was later on aggravated on account of a decrease in desire for petroleum merchandise because of to COVID-19.

To management the harm of COVID-19 in the nation, a nation-huge lockdown has been applied from March 24, 2020, limiting all non-crucial activities till May perhaps 03, 2020. With journey limitations (street as well as air) desire for motor spirit (MS), high-pace diesel (HSD) and aviation turbine fuel (ATF) has appear down considerably, notes Treatment Rankings in a notice dated April 30.

Treatment Rankings believes that the desire for petroleum merchandise will continue to be sluggish in the close to time period and H1FY21 will be noticeably decreased compared to previous quarters.

As regards oil marketing corporations (OMCs), the rankings organization believes the credit profile of the OMCs will continue to be sturdy in close to to medium time period with increased revenue, decreased personal debt, and far better liquidity profile. Additionally, supplied their strategic relevance to domestic oil & fuel coverage and straightforward access to cash, their credit profile is envisioned to continue to be sturdy.