The outlook for ONGC stock in 2020

Shares of Oil and Natural Gas Corp. Ltd (ONGC) lacked the energy in 2019. The stock has declined by nearly 15% so far this year, while the Nifty 100 index has increased by 11%. What gives?

For one, production performance has been nothing to write home about. For the six months ended September, standalone gas production rose by a mere 1% year-on-year, while crude oil production declined by 4.7%. Second, outlook on crude oil prices isn’t spectacular, as global oil demand is not expected to be robust from a near to medium term perspective. Brent crude oil prices are currently hovering around $68 a barrel and analysts don’t expect meaningful upsides from these levels.