Crude Oil Prices Surge Past $97/Barrel, Impacting Oil-Linked Stocks

Global crude oil prices surged past $97 per barrel on Monday, causing a decline in oil-linked stocks such as Reliance and Indian Oil. The price hike was due to supply chain disruption concerns at the Strait of Hormuz amid the ongoing conflict between the US and Iran.

The Nifty Oil & Gas benchmark declined 0.41% to an early market low of 11,141.40 points compared to the previous close. Oil downstream companies, including OMC stocks, aviation stocks, tyre stocks, and paint stocks, were affected by higher commodity prices.

HSBC analysts noted that energy importers like India may see volatility due to higher import bills and pressure on external balances and inflation.