

Three stocks to watch as crude oil prices increase
Subscribe to enjoy similar stories. Crude oil prices have been rallying in the last few days, putting oil and gas companies in focus. A key reason for the recent crude price surge is escalating geopolitical risk, particularly around Iran and the possibility of conflict.
Markets are pricing in the risk that oil supply could be disrupted if tensions escalate further or if Iran threatens to block the Strait of Hormuz, through which nearly 20% of global crude exports flow. Here are a few stocks to watch as crude oil prices soar. ONGC is the nation’s largest crude oil producer.
When crude oil prices rise, ONGC benefits mainly because it sells its crude at prices linked to global benchmarks. Higher crude prices increase ONGC’s revenue per barrel while most of its production and exploration costs remain largely fixed, leading to a sharp improvement in operating margins and profits. This operating leverage means even a moderate rise in crude prices can translate into a disproportionately higher increase in earnings and cash flows.
Stronger cash generation improves ONGC’s ability to fund exploration, develop new fields, and support its overseas investments through ONGC Videsh, which also earns better returns when global oil prices are high. In Q2 FY26, ONGC recorded an increase in revenue, reaching ₹1,57,911.1 crore, a fall from ₹1,59,331.1 crore in the corresponding period of the previous year. The net profits of the company were placed at ₹12,275.0 crore vs ₹9,853.6 crore year-on-year.
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