CNX Energy up, close to one per cent as crude future trades at year's high

Oil futures on Monday ended at more than one-year high as the global energy analysts and experts calculated the impact which will occur on the crude prices going ahead. However, upstream oil company’s in India will be the beneficiaries of increase in oil prices.

Any increase in the oil prices is good for the oil exploration companies which are also known as upstream oil companies.  On the other side downstream oil majors which are into oil marketing and retailing take a hit due to rising oil prices which will shrink the margins going forward.

However, a lower oil price bodes well for the country as India imports close to 80 per cent of its energy needs from abroad. Increase in crude prices for long can be a negative signal for the economic health of the companies which are currently facing demonetisation problems of their own.
Ever since the OPEC decided on production cut Nifty Energy index has gained close to two per cent with upstream companies reaping major gains.

Gainers in trade: -

Tata Power- 3.14 %

Gail India- 1.84 %

IOC- 1.67 %

HPCL- 1.60 %

NTPC- 1.1 %