Four top oil exploration stocks to watch as crude jumps 85% in 2026
Brent crude prices soaring in 2026.Brent began the year at approximately $61.98 per barrel and surged to around $114.57 by the end of trading on 27 March, following the outbreak of the Iran war on 28 February.This sharp rally of about 85% is a result of a massive geopolitical risk premium. The catalyst was the closure of the Strait of Hormuz, which trapped nearly 20% of global oil supply.Physical strikes on refineries, skyrocketing maritime insurance, and speculative hedging have further strained the market.
For India, this spike threatens to widen the current account deficit and squeeze corporate margins across oil-dependent sectors.However, oil and gas exploration companies tend to benefit from rising crude prices, as they realize higher selling prices while production costs remain relatively stable.This expands profit margins, boosts cash flows, and increases earnings. Higher prices also improve the value of their reserves, strengthening overall financial performance and investor sentiment.Here’s the caveat, though: If the government were to reimpose a windfall tax on domestic crude oil production, as it has done in the past, all profitability calculations can go awry.
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