ONGC, Oil India shares rally up to 10%; Here's how they benefit from rising crude prices

Shares of state-run Oil & Natural Gas Corporation (ONGC) Ltd., and Oil India Ltd. gained up to 10% on Wednesday, January 28, after the crude oil prices touched a four-month high in the global markets.

For Oil India, the stock has gained in four out of the last five trading sessions.

Crude oil prices globally have moved to a four-month high, with Brent Crude now trading close to the $68 per barrel mark. Weakness in the US Dollar, coupled with tensions surrounding speculations of a possible US attack on Iran,

Oil prices are rebounding from having declined to multi-year lows in December over prospects of easing tensions between Russia and Ukraine and the Middle East. However, the impasse continues in both the regions.

The rise in Oil prices is beneficial for upstream oil companies like ONGC and Oil India, as every one dollar rise in prices can benefit the annual revenue for both these companies by ₹300 crore to ₹400 crore.

Shares of Oil India are up 14% so far in January. Barring 2025, the stock has delivered positive returns in the month of January every year going back to 2021.

ONGC shares are also up 10% so far this month. The stock had gained a similar quantum in January 2025 as well, and has delivered positive returns every January going back to 2022, with the expectation of 2023.

Shares of Oil India are currently trading 7.4% higher at ₹482, while ONGC shares are trading 5.7% higher at ₹262.1.