Nifty Oil and Gas surges over 2% amid fall in crude oil prices; RIL, BPCL, and HPCL gain big

Oil and gas stocks were trading higher on Wednesday, June 11, as oil prices were down in the early trades as markets across the globe assess the outcome of US-China trade talks. Weak oil demand from China and OPEC+ production also weighed on the sector.

Following this, Nifty Oil and Gas surged over 2% in the early trades to an intraday high of 11,790.25 levels. Last seen, the index was trading 1.87% higher.

Brent crude futures declined 19 cents, or 0.3%, to trade at $66.680 a barrel, while US West Texas Intermediate crude fell 16 cents, or 0.3%, to $64.82.

Almost all the stocks in the NIFTY Oil and Gas sector were trading higher except for Castrol India, which slipped 1.03%.

In the oil and gas sector, Bharat Petroleum Corporation Limited (BPCL) took the lead, jumping 3.34%. Hindustan Petroleum (3.14%), Oil India (2.86%), Indian Oil (2.52%) and GAIL (1.86%) were the other gainers.

ONGC (1.54%), Reliance Industries (1.4%), Gujarat Gas (1.07%), Mahanagar Gas (1.05%) and Aegis Logistics (0.97%) were also trading higher.

Market investors were also hopeful as US Commerce Secretary Howard Lutnick on Tuesday said that the US and Chinese officials agreed on a framework to put their trade truce on track and resolve China's export restrictions on rare earth minerals and magnets.

Meanwhile, as per a forecast by the United States Energy Information Administration, crude oil spot prices will continue to decline throughout 2025 and 2026 amid slower demand growth, and OPEC+ production will continue to cause global oil inventories to build, S&P Global Commodity Insights reported.

At the time of writing this piece, BSE Oil and Gas was trading at levels, rising 1.64%.