ONGC, Oil India Shares Take a Hit Amid Falling Crude Prices

11 Sep 2024 , 01:00 PM

ONGC and Oil India (OIL) shares fell 3% to Rs 287.30 and 6.4% to Rs 570, respectively, on the BSE, following a steep drop in crude oil prices, which typically has a negative impact on profit margins.

Crude oil prices have fallen to nearly three-year lows as OPEC revised its demand predictions downward, mostly due to lower Chinese consumption. In its monthly report released yesterday, OPEC revised its global oil demand prediction for 2024 to 2.03 million barrels per day, down from the prior estimate of 2.11 million barrels per day.

Chinese demand growth was also reduced lower to 650,000 barrels per day, down from 700,000 barrels per day in the prior report.

Crude oil prices rose on Wednesday as worries about Tropical Storm Francine affecting crude supplies outweighed concerns about demand.

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