Petroleum stocks spike up

Oil and gas stock surged during post-lunch hours on Thursday. The S&P BSE Oil & Gas index was at 16,529.23, up by 327.25 points or 2.02%. Nifty Energy was also upbeat at 14,399.1, up by 1.14%. 

The spike in the oil and gas stocks can be attributed to a new policy announcement to be made by the government. The policy aims at boosting foreign participation in the oil & gas sector, reported an international news agency quoting top Oil Ministry officials. 

The front-runner among the petroleum company stocks were BPCL, trading at Rs. 531 per share, or up 4.12%, followed by Castrol India at Rs. 400 per share, up by 3.72%; IOC was trading at Rs. 428.05 per share, up by 2.64%, HPCL was at Rs. 474.90 per share, up by 2.60%, Oil India was at Rs. 343.95 per share, up by 1.49%, ONGC was at Rs. 179.00 per share, up by 1.24%, GAIL was at Rs. 464.70, up by 1.20%; Reliance was at Rs. 946.00 per share, up by 0.64%, Petronet was at Rs. 258.15, up by 0.39%. 

In the international market oil prices inched lower on the back of increased US crude inventories and production. Prices for Brent crude for December delivery were down 4 cents at $58.40 a barrel at 0523 GMT. On Wednesday, the prices had gone up marginally reacting to comments by Saudi Arabia's energy minister reiterating the country's resolve to end the global supply glut. A downward movement in international crude prices tends to help domestic oil and gas companies by improving their margins.