The Crude oil prices went up both in Brent and WTI over 30%, since the mid of last December. The Brent Crude is presently at USD70.6 per barrel in the international market. The factors that have stimulated the oil prices are strong US employment data as well as production cut from the OPEC and linked nations. Moreover, the US sanctions on Iran-Venezuela are yet another factor to the oil price rally.
This year 2019, OPEC and Russia have slashed oil production by about 1.2mln-p/b, per day. On sideline, crude oil production in the US hit to a Substantial high of 12.2mln-p/b per day.
Nifty energy index went down 0.74 percent or 120 points in the afternoon session today, at 16,051.50, after Brent crude prices rose in international market. The major contributors for this fall in Energy index, were the oil companies namely Hindustan Petroleum (HPCL) which was down 3.77%, Indian Oil Corp down 2.49% and Bharat Petroleum (BPCL) down 1.86% during the day. Also, Reliance, GAIL have traded lower by 1.51-percent each, for the day.
In comparison, the BSE Sensex lower at 38675-mark down 186 points and the Nifty at 11,591-level, down 74 points, as at 2.00pm, Monday.