Crude oil prices continue to rise, jump 40% in March amid US-Iran war: Can they rally more?
Analysis of this story by livemint_markets · 16 Mar 2026, 11:30 AM IST (about 2 months ago)
AI Analysis
The sharp rise in crude oil prices due to geopolitical events directly impacts India's import bill and inflation, affecting the broader economy. For the oil & gas sector, it creates a clear divergence between upstream and downstream players.
Trading Insight
Key Evidence
- •Crude oil prices have jumped 40% in March.
- •The rise is attributed to heightened geopolitical tensions between the US and Iran.
- •Brent crude is expected to reach $130 per barrel by week's end, according to Choice Broking.
- •Risk flag: De-escalation of geopolitical tensions could lead to a sharp correction in crude prices.
- •Risk flag: Government intervention in fuel pricing could mitigate OMC losses but impact fiscal health.
Affected Stocks
Higher crude oil prices directly increase revenue and profitability for upstream exploration and production companies.
As an upstream oil exploration and production company, higher crude prices boost its earnings.
As an oil marketing company (OMC), rising crude prices increase input costs, potentially squeezing marketing margins if retail prices are not fully passed on.
While its refining and petrochemicals segment faces higher input costs, its upstream exploration business could benefit. Overall impact depends on refining margins and ability to pass on costs.
Sources and updates
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