Oil India shares surge 10% as global crude prices touch multi-year high

Shares of state-run Oil India jumped nearly 10 per cent on Wednesday due to skyrocketing global crude oil prices.

Lower supplies as well as hostilities between Russia and Ukraine pushed Brent crude oil price to nearly an 8-year high at $111 per barrel. In just the last two days, crude prices have risen nearly 15 per cent.

At present, Russia is the third largest producer of crude oil in the world and sanctions against Russia may hurt global supply.

Oil India shares settled 9.7 higher from the previous close at Rs 244.55.

“Russia is the third largest exporter of crude oil after the U.S. and Saudi Arabia and Russian invasion on Ukraine has affected global supply of oil. As per the API report released on Tuesday the U.S. inventories unexpectedly declined by 6.1 million barrels last week and also supported oil prices,” brokerage firm Prithvi Finmart said in a note.

“OPEC+ is also meeting this week and if they maintain status-quo on the production quota, (it) could further support oil prices.”

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