ONGC, Oil India, Chennai Petroleum, MRPL shares climb as Brent nears $100

Shares of Oil and Natural Gas Corporation Ltd (ONGC), Oil India Ltd, Chennai Petroleum Corporation Ltd (CPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL) gained in Tuesday's trade as Brent crude prices moved closer to the $100-per-barrel mark.

Oil India shares surged 2.91 per cent to Rs 499.05, while CPCL gained 2.13 per cent to Rs 1,460.20. ONGC rose 1.47 per cent to Rs 237.40, and MRPL edged 0.32 per cent higher to Rs 173.70 at the time of writing. Antelopus Selan Energy Ltd, Hindustan Oil Exploration Company Ltd and Prabha Energy Ltd were also trading higher, with gains of up to 12 per cent.

Brent crude futures were up $2.18 or 2.25 per cent at $99.18 a barrel, while US West Texas Intermediate (WTI) crude was trading at $94.44, up $2.96 or 3.24 per cent.

Brent had earlier touched $99.22 a barrel, its highest level since July 24, while WTI climbed to $94.60, its highest since June 8.

Oil prices rose after Iran-backed Houthis attacked energy facilities in Saudi Arabia, while Tehran threatened the United States with "economic warfare".

Operations at some energy facilities in Saudi Arabia, the world's largest oil exporter, were halted on Tuesday following attacks by Yemen's Iran-aligned Houthis that wounded 73 people, according to Saudi authorities, who described the incident as a dangerous escalation.

Iran also threatened the US with "economic warfare" and said it had fired an advanced missile at US warships, adding to concerns over further escalation in the region.

On Saturday, US forces struck three Iranian oil tankers, including one near Kharg Island, Iran's main oil export hub, according to the US Central Command. The strikes followed attacks by Iran's Revolutionary Guards on US warships operating in the region.

Shipping traffic through the Strait of Hormuz also slowed at the beginning of the week after Iran threatened retaliation against any fresh US attacks. Before the conflict began in late February, the Strait of Hormuz handled around one-fifth of the world's daily oil and liquefied natural gas supplies.

Meanwhile, Choice Institutional Equities said higher crude prices remain a headwind for oil marketing companies (OMCs), while CPCL and MRPL continue to benefit.

The brokerage has a target price of Rs 215 per share for MRPL and Rs 1,540 per share for CPCL.

(With inputs from Reuters)