ONGC shares gain 3% in pre-market trading

ONGC shares gain 3% in pre-market trading

ONGC Shares Gain 3% in Pre-Market Trading Amid Geopolitical Tensions and Rising Oil Prices

Shares of Oil and Natural Gas Corporation (ONGC) rose 3% in pre-market trading on March 1, 2026, reflecting renewed investor confidence driven by elevated global crude prices and ongoing geopolitical tensions in the Middle East. The surge aligns with broader gains in upstream oil stocks, including Oil India, which have benefited from a 7–12% rise in Brent and WTI crude prices in recent sessions.

The upward momentum in oil prices follows escalating conflicts between the U.S., Israel, and Iran, which have disrupted supply routes and raised concerns about potential disruptions at the Strait of Hormuz—a critical global oil transit point. Brent crude futures traded at $78.24 per barrel as of March 1, up $5.37 (7.37%) from earlier in the month, while U.S. WTI crude gained 6.95% to $71.68 per barrel. Analysts note that even limited escalation in regional tensions could push Brent prices above $90 per barrel, with severe disruptions potentially driving prices beyond $100.

ONGC's shares have been particularly sensitive to these dynamics, as higher crude prices directly boost revenue for upstream producers. The stock has gained 11% over the past five trading days and 13.55% in the last month, reaching a 52-week high of ₹269.50. This rally coincides with ONGC's recent strategic initiatives, including shipbuilding contracts for ethane carriers and partnerships with global majors like Shell and ExxonMobil to enhance offshore exploration capabilities.

However, experts caution that prolonged tensions could introduce risks, including higher import costs for India, inflationary pressures, and potential currency depreciation. According to JM Financial, every $1 increase in crude prices adds approximately $2 billion to India's annual oil import bill. While ONGC and peers remain well-positioned to capitalize on near-term price volatility, market participants will closely monitor developments in the Middle East and global supply chain stability.

, January 2026: Economic Times, January 2026
, January 28, 2026: Ventura Securities, January 28, 2026