ONGC and GAIL at new high

ONGC rose over 5.5% today to hit a new high at Rs.172.80 and its market cap is at staggering at over Rs.2 lakh crore.

The other upstream oil company, GAIL also went on to hit a new high at Rs.171.35.

Most of the oil and gas stocks are in the green today and this is because the price of crude has shot up to 2014 levels following the OPEC + meet on Monday.

Despite a surge in demand, the OPEC+ group of producers stuck to its planned output increase rather than raising it further, which means prices will only up further as the market will remain undersupplied for a few months ahead.  

OPEC+ agreed to adhere to its July pact to boost output by 400,000 barrels per day (bpd) each month until at least April 2022, phasing out 5.8 million bpd of existing production cuts.

Today, U.S. Energy Information Administration will release its oil inventory data and if that shows a fall, crude oil prices will only go up further.