Shares of organizations tied up in crude oil exploration business plunged sharply after crude oil prices crashed in international markets. The operator of world’s biggest crude oil refining facility at Jamnagar and operator of KG-D6 basin in Krishna Godavari basin – Raliance Industries – plummeted as much as 13.65%, it biggest single day drop in at least 10 years, to hit an intra-day low of 1,096.65, data from BSE displayed.
State run ONGC also reached the new low with 13% to hit intra-day low of Rs 77.80. Oil prices in international markets dropped more than 30% after the disintegration of the Organization of the Petroleum Exporting Countries (OPEC) + alliance gave way to all-out price war between Saudi Arabia and Russia that is expected to have extensive political and economical repercussions.
Crude oil dropped the most since 1991 on Monday following a price war between Russia and Saudi Arabia, slashing its selling price and plegding to unleash its pent-up supply onto a market stumbling from descending demand because of the coronavirus.
Brent crude oil dropped by as much as $14.25, or 31.5%, to $31.02 a barrel. This is the biggest percentage fall since 17th January 1991, and the lowest since 12th February, 2016.
US West Texas Intermediate crude dropped as much as $11.28 to $30 a barrel. That was also the biggest percentage drop since January 1991 and the lowest since 22nd February, 2016.
In the meantime, equity markets observed massive selling on onday as beanchmark indices plunged above 4% tracking a selloff in global markets, as investors took fright about the grievousness of coronavirus epidemic amid fears of economic decline.
As of 12:30 pm, Reliance Industries traded 9% lower at Rs 1,155 and ONGC fell 12.39% to Rs 78.10.