India’s Oil Sector In Focus As Brent Jumps On Geopolitical Risks: SEBI RA Harika Enjamuri

Brent crude’s 2.5% surge to $64.34 per barrel in early Asian trading on Monday could trigger margin pressure across Indian oil marketing companies, aviation, and paints sectors, according to SEBI-registered analyst Harika Enjamuri.

Brent crude was trading at $64.14, up 2.17% or $1.36, as of 2:12 AM EDT.

She said the move, driven by intensifying Russia-Ukraine tensions and a fresh U.S. sanction push, supports upstream players like ONGC and Oil India but poses headwinds for IOC, BPCL, and Hindustan Petroleum.

Enjamuri noted that a proposed 500% U.S. tariff on crude importers engaging with Russia, including China and India, is compounding supply fears.

She added that continued Brent strength could also weigh on the rupee and inflation outlook.

WTI futures also rose 3% to $62.63 on Monday, while a planned 411,000 bpd OPEC+ output hike for July failed to offset market concerns.

Brent crude is down 13.8% year-to-date despite the recent rebound.

So far this year, ONGC, Indian Oil, and BPCL shares have gained 0.4%, 0.2%, and 7.4% respectively, while Oil India slipped 3.7% and Hindustan Petroleum fell nearly 1%.

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