Why Oil Stocks Are Rallying Today: ONGC, Oil India Jump Up to 10% on Crude Price Surge

Shares of major oil companies such as ONGC and Oil India surged sharply in today’s trading session, rising by nearly 10% intraday. The rally was driven mainly by a jump in crude oil prices, triggered by supply disruptions in the United States.

Winter Storm Disrupts US Oil Supply

Crude oil prices moved higher after Winter Storm Fern disrupted nearly 15% of US oil production. The storm forced temporary shutdowns of oil fields and halted exports along the US Gulf Coast, raising fears of a short-term supply shortage in global markets.

On the MCX, crude oil futures for the February contract rose ₹82 (1.44%) to trade at ₹5,787 per barrel, reflecting strong buying interest.

Crude Prices at Four-Month Highs

International crude prices also remained firm. WTI crude traded above $62 per barrel, close to its highest level in 4 months. 

Additional Boost for ONGC

ONGC stocks received extra support from news of a strategic deepwater exploration agreement with Reliance Industries. The partnership strengthened investor confidence in ONGC’s long-term production prospects.

Other Factors Supporting Oil Prices

Apart from supply disruptions, crude prices were supported by:

• Geopolitical tensions in the Middle East
• Unexpected decline in US crude inventories, as reported by API
• A weaker US dollar, making oil cheaper for global buyers
• Stronger-than-expected GDP data from the US and China

All these factors added to bullish sentiment in the oil market.

Read More: Best Monopoly Stocks in January 2026: HAL, CDSL, IRCTC and More Based on 5-yr CAGR Basis.

ONGC Stock Performance Snapshot

ONGC shares have shown strong momentum:

• Up 10.75% in one week
• Up 14.5% in one month
• Up 12% in six months
• Up around 8% over one year

Conclusion

The sharp rally in oil stocks like ONGC and Oil India is mainly driven by rising crude oil prices due to US supply disruptions, geopolitical risks, and supportive global cues. 

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