By Aditya Raghunath
Investing.com -- Oil company stocks are on a tear in India since November 2 rising between 15% and 52% since then. The first week of November was around the time when Pfizer-BioNTech (NYSE: PFE ) announced the successful results of its vaccine trials. Crude oil prices have risen 26% from $36.81 to $46.65 in the same period.
India’s five oil majors have all seen substantial gains in their stock prices since November 9. ONGC (NS: ONGC ) has gone up by 52% from Rs 65.7 to Rs 99.5. Indian Oil (NS: IOC ) is at Rs 95.75, up 22% from Rs 78.2. HP is trading at Rs 223, up 19% from Rs 187.3 on November 2. Bharat Petroleum Corp. Ltd. (NS: BPCL ) is currently at Rs 404.5, up 17% from Rs 346.4. Oil India (NS: OILI ) has moved up 34% from Rs 84.05 to Rs 112.5.
Moderna Inc (NASDAQ: MRNA ) and Oxford-AstraZeneca have also announced successful trials and the UK has become the first country in the world to start administering the vaccine. A slew of other countries in Europe plus the US, Canada, and India are set to follow suit. This has led to an increase in oil prices as there is hope that oil demand will increase in 2021 compared to a miserable 2020 for the sector.
Last week, OPEC (Organization of the Petroleum Exporting Countries) agreed to increase production by 500,000 barrels per day from January 2021. All of these are encouraging signs for the sector and if oil continues to go up, the rally should continue.
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