InvestorQ : Why did oil and gas stocks like ONGC and GAIL rally so sharply on Monday 08 March?
ishika Banerjee made post

Why did oil and gas stocks like ONGC and GAIL rally so sharply on Monday 08 March?

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2 months ago
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On Monday, 08 Marc, hydrocarbon stocks like ONGC and GAIL rallied by over 7% in line with a spike in the crude oil prices and expectations that global shortages and a rather rigid approach of the OPEC could spike crude oil prices further. Brent crude crossed $70/bbl mark on Monday after Yemen's Houthi forces fired drones and missiles at the heart of Saudi Arabia's oil industry.

Of course, there has also been a demand story as we have seen a gradual recovery in the global economy, thereby improving demand for crude oil. On the supply side, even as US supplies are getting back to normal, the Texas ice burst has resulted in a 1 million bpd shortfall on a consistent basis. Indian oil and gas companies are making the most of it. In fact, JP Morgan has upgraded the price of target of ONGC to Rs.190/share.

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