Oil prices remained largely unchanged as OPEC stuck to its demand growth forecasts and geopolitical tensions persisted. Brent futures and WTI crude registered marginal gains. China’s weakening demand countered the optimism. Ongoing conflicts in the Middle East heightened uncertainties. Traders took the attacks on energy facilities in Yemen and Russia in their stride. Concerns were eased by expectations of the delays not impacting oil prices in the long term.
Shares of state-owned Oil India Limited (OIL) jumped nearly 8% to their 52-week high as international crude oil prices jumped more than $3 a barrel due to the Israel-Hamas crisis. Meanwhile, shares of oil marketing companies (OMCs) plunged as investors weighed the impact of the conflict on the margins.
Indian equities weakened as uncertainty due to the Israel-Hamas conflict led to a flight of money to safe-haven assets like gold and the US dollar. The surge in oil prices caused by geopolitical tensions further dampened investor sentiment.
