ONGC share price rises after crude oil surges in international markets

ONGC share price rose as much as 2.55 per cent to hit an intraday high of Rs 299.55 on the BSE after price of crude oil jumped in international markets following rising tensions in Middle East after Iran fired missiles on Israel sparking fears of supply chain concerns, analysts said.

ONGC , the state-run oil exploration company, stands to benefit from rising oil prices, analysts added.

Oil prices inched up in early Asian trading hours on Friday, holding on to their strong weekly gains, as investors weighed the Middle East conflict and the potential disruption in crude flows against an amply-supplied global market.

Brent crude futures were up 9 cents, or 0.12 per cent, to $77.71 a barrel. US West Texas Intermediate crude futures were up 8 cents, or 0.11 per cent, to $73.79 a barrel.

Both benchmarks were on track for weekly gains of about 8 per cent.

However, the supply fears have been tempered by OPEC's spare production capacity and the fact that global crude supplies have yet to be disrupted by the Middle East unrest.

Libya's eastern-based government and Tripoli-based National Oil Corp announced on Thursday the reopening of all oilfields and export terminals after a dispute over leadership of the central bank was resolved, ending a crisis that had heavily reduced oil production.

As of 11:58 am, ONGC shares traded 2.24 per cent lower at Rs 298.65, outperforming the Sensex which was up 0.70 per cent.