Shares of Oil and Natural Gas Corp. Ltd (ONGC) have had a strong run in recent months. The stock has appreciated as much as 25% from its lows in mid-February. Of course, until February, it was on the decline, with investors worried that the state-run upstream oil producer would have to bear some subsidy burden for FY19. The recent increase in the stock is thanks to shrinking fears of subsidy sharing, say analysts.<\/p>\n
\u201cThe government has created a reasonable FY20 cooking fuel subsidy budgetary provision of \u20b937,500 crore, which implies NIL burden on upstream PSUs as long as Brent averages under $65 a barrel,” said analysts from SBICAP Securities Ltd in a report on 31 May.<\/p>\n
But lower crude oil prices can be a double-edged sword for the oil producer. After all, a sharper decline in broader crude oil prices will mean lower price realizations.<\/p>\n","protected":false},"excerpt":{"rendered":"
Shares of Oil and Natural Gas Corp. Ltd (ONGC) have had a strong run in recent months. The stock has appreciated as much as 25% from its lows in mid-February. Of course, until February, it was on the decline, with investors worried that the state-run upstream oil producer would have to bear some subsidy burden for FY19. The recent increase in the stock is thanks to shrinking fears of subsidy sharing, say analysts. \u201cThe government has created a reasonable FY20 cooking fuel subsidy budgetary provision of \u20b937,500 crore, which implies NIL burden on upstream PSUs as long as Brent averages […]<\/p>\n","protected":false},"author":40,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[139,130,187],"tags":[],"class_list":["post-278056","post","type-post","status-publish","format-standard","hentry","category-live-mint","category-newspapers","category-oil-gas-live-mint"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/278056","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=278056"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/278056\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=278056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=278056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=278056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}