Calculate your SIP Returnexplore announcement button
Open Demat Account Login

Crude Oil & Natural Gas Stocks

India's oil and gas sector ranked third globally, drives economic growth with increasing consumption and ambitious expansion plans. Petroleum product consumption surged by 4.9%, reaching 152.3 MMT, while natural gas saw an 8.4% rise. With a refining capacity of 253.91 MMT and 23 refineries, India attracts significant investment, aiming to double its refining capacity to 450-500 million tonnes by 2030. Crude oil production reached 29.2 MMT in FY22-23, with consumption projected to grow at 5.14% annually, reaching 500 million tonnes by FY40. Investors must consider volatile oil prices, geopolitical risks, regulatory changes, and technological advancements before investing. Read More
Company
LTP
Volume
Market Cap
52W Low
52W High

LTP

₹ 72.66

0.00 (0.00%)

Volume

81,485

Market Cap

₹423 Cr

52W Low

₹38.95

52W High

₹93.35

LTP

₹ 286.1

4.35 (1.54%)

Volume

64,560

Market Cap

₹1,151 Cr

52W Low

₹118.00

52W High

₹344.25

LTP

₹ 180

0.24 (0.13%)

Volume

12,071

Market Cap

₹575 Cr

52W Low

₹115.20

52W High

₹237.00

LTP

₹ 295.7

-4.95 (-1.65%)

Volume

47,631

Market Cap

₹1,923 Cr

52W Low

₹171.10

52W High

₹331.75

LTP

₹ 14.78

0.49 (3.43%)

Volume

97,194

Market Cap

₹115 Cr

52W Low

₹12.27

52W High

₹31.10

LTP

₹ 191.56

3.36 (1.79%)

Volume

26,70,671

Market Cap

₹2,486 Cr

52W Low

₹154.70

52W High

₹257.95

LTP

₹ 275.95

-0.60 (-0.22%)

Volume

50,09,606

Market Cap

₹3,47,908 Cr

52W Low

₹155.40

52W High

₹292.95

LTP

₹ 695.4

17.55 (2.59%)

Volume

45,46,001

Market Cap

₹73,458 Cr

52W Low

₹240.80

52W High

₹709.00

LTP

₹ 752.55

-2.55 (-0.34%)

Volume

5,42,048

Market Cap

₹1,147 Cr

52W Low

₹296.00

52W High

₹792.45

LTP

₹ 0.42

0.02 (5.00%)

Volume

1,00,053

Market Cap

₹11 Cr

52W Low

₹0.00

52W High

₹0.42

With Zero Brokerage on Equity Delivery

About the Crude Oil Sector

India, ranked as the world’s third-largest energy and oil consumer, heavily relies on the oil and gas sector, a key player among its core industries. In the period from April to November 2023, the country saw a 4.9% increase in the consumption of petroleum products, reaching 152.3 million metric tonnes (MMT), and an 8.4% rise in natural gas consumption, reaching 43.7 billion cubic meters (BCM) compared to the same period in 2022.

The economic growth of India is closely tied to its energy demand, which is expected to rise, making the oil and gas sector an attractive investment. With 23 refineries, India is already a significant refining hub in Asia, boasting a refining capacity of 253.91 MMT as of April 2023. About 35% of this capacity is owned by private companies.

In the fiscal year 2022-23, India’s crude oil production reached 29.2 MMT, and the country is planning to expand its refining infrastructure to attract foreign investment. Petroleum product consumption in India stood at 222.3 MMT, with high-speed diesel leading at 38.6% in FY23.

India’s crude oil production during April-July 2023 was 1.59 million barrels per day (MBPD), contributing to the country’s overall petroleum consumption of almost 4.44 million BPD in the same fiscal year, up from 4.05 million BPD in FY22.

Future Outlook of the Crude Oil Sector

India’s rapid economic growth drives increased oil demand for production and transportation. Crude oil consumption is expected to grow at an annual rate of 5.14%, reaching 500 million tonnes by FY40 from 202.7 million tonnes in FY22.

India’s oil consumption in barrels is projected to rise from 4.05 MBPD (Million Barrels Per Day) in FY22 to 7.2 MBPD in 2030 and 9.2 MBPD in 2050. Diesel demand is set to double to 163 MT by 2029-30, with diesel and petrol making up 58% of India’s oil demand by 2045, fueled by strong economic growth and urbanisation.

The forecast indicates a CAGR of 12.2% in natural gas consumption, reaching 550 MCMPD ( Million Cubic Metres Per Day) by 2030 from 174 MCMPD in 2021. Indian refiners plan to add 56 MTPA by 2028, increasing domestic capacity to 310 MTPA. India aims to double its oil refining capacity to 450-500 million tonnes by 2030.

India’s energy demand is expected to outpace major global economies, doubling its share in global primary energy consumption by 2035, driven by sustained robust economic growth.

Things To Consider Before Investing in the Crude Oil Sector

Investing in the crude oil sector can be lucrative, but it comes with its own set of challenges and risks. Here are key factors to consider before making investment decisions:

  • Oil Price Volatility: Crude oil prices are highly volatile and can be influenced by geopolitical events, economic conditions, and supply-demand dynamics. Investors should be prepared for price fluctuations.
  • Global Economic Conditions: The crude oil sector is closely tied to global economic conditions. Economic downturns can lead to reduced demand for oil, impacting prices and potentially affecting investment returns.
  • Geopolitical Risks: Geopolitical events, such as conflicts in oil-producing regions, can disrupt oil supplies and impact prices. Investors need to stay informed about geopolitical developments that may affect the oil market.
  • Regulatory Environment: Oil exploration and production are subject to various regulations. Changes in environmental policies, drilling regulations, or taxation can significantly impact the profitability of oil investments.
  • Technological Advances: Advancements in renewable energy and technology may impact the long-term demand for crude oil. Investors should consider the potential shift towards cleaner energy sources and the impact on the oil sector.
  • Supply and Demand Dynamics: Understanding global oil supply and demand trends is crucial. Oversupply or undersupply situations can lead to price fluctuations. Factors such as OPEC decisions and non-OPEC production levels should be monitored.
  • Currency Fluctuations: Oil prices are often quoted in U.S. dollars. Currency fluctuations can impact the actual returns for investors in different currencies.
  • Environmental and Social Impact: Increasing awareness of climate change and environmental concerns may lead to regulatory changes and public sentiment that could affect the oil industry. Investors should consider the social and environmental impact of their investments.

How To Invest in the Crude Oil Sector Stocks?

To invest in sector stocks via Angel One, follow these steps:

  • Log in to your Angel One account.
  • Click on the search icon and look for your desired Crude Oil sector stock.
  • Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
  • To complete your transaction, click on the ‘Buy’ button.

You can track the status of the purchase from the ‘Positions’ section in the ‘Orders’ module. Once the stock is delivered, you can track its gains and losses from your ‘Portfolio.’

FAQs

What are crude oil sector stocks?

Jewellery sector stocks are publicly traded shares of companies involved in the design, manufacturing, and/or retail of jewellery, representing an investment opportunity in the jewellery sector.

Which is the top stock from the crude oil sector in terms of market cap?

As of January 29, 2024, Reliance Industries Ltd is the top stock from the crude oil sector with a market capitalisation of ₹18,30,896.31 crore.

How to evaluate crude oil sector stocks?

Evaluate crude oil sector stocks using metrics like EV/DACF, EV/EBITDA, EV/BOE per day, and Price/Cash Flow per Share to assess financial health, operational efficiency, and reserve valuation.

Why should you invest in crude oil sector stocks?

Investing in crude oil sector stocks can provide opportunities for potential returns due to the sector’s sensitivity to global economic conditions and energy demand.

Which are the best crude oil sector stocks to invest in?

Mangalore Refinery and Petrochemicals Ltd is one of the best crude oil sector stocks on the basis of 5Y CAGR from the NIFTY 500 universe. As of January 29, 2024, the company recorded a CAGR of 21.39% in the past 5 years.

Learn to Earn
Learn from our knowledge center curated by our experts, which will help you take informed decisions about your investments.
Learn to Earn

Enjoy Zero Brokerage on
Equity Delivery

Enjoy Zero Brokerage on Equity Delivery

Get the link to download the App

Send App Link