Fri Apr 04 04:40:00 UTC 2025: ## Oil Stocks Plunge on OPEC+ Production Surge

**Mumbai, April 5** – Shares of India’s state-run oil giants, Oil India Ltd. and ONGC, plummeted on Friday following a sharp overnight drop in global crude oil prices. Oil India experienced a 6.7% decline, closing at ₹386.05 per share, while ONGC fell 6.44%, ending the day at ₹243.31.

The dramatic price fall is attributed to a surprise announcement by OPEC+ of a significantly larger-than-expected production increase. Instead of the planned 1.38 million barrels per day hike in May, the cartel announced a 4.11 million barrel per day increase, aiming to punish countries exceeding their production quotas. This, coupled with Donald Trump’s recent tariff announcements and recession fears in the US, fueled market instability. Brent crude fell to $70 per barrel, while WTI touched nearly $66, both experiencing approximately 7% drops.

The impact on Indian oil companies is significant, as the decreased crude prices negatively affect profit margins. While crude prices have fallen sharply, refined product prices are not expected to follow suit immediately, potentially leading to inventory losses for refineries holding higher-priced crude.

This latest drop adds to the already substantial losses seen in both companies’ share prices over the past six months. Oil India shares have fallen almost 36%, and ONGC shares have dropped nearly 23% during this period. Investors are advised to consult with financial professionals before making any investment decisions.

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