New Delhi: After the price of crude oil rose and the government reduced the windfall tax on production and diesel exports, ONGC led oil drillers and refineries in a surge of demand on October 3.

Around 12.50 p.m., ONGC, the largest oil marketing business in India, was trading 4 percent higher.

In an effort to boost the market, OPEC+, a group of oil-producing countries, considered cutting output by more than 1 million barrels per day, which would be its greatest reduction since the epidemic, on Monday morning in early Asian trade.

After closing down 0.6 percent on Friday, Brent crude futures rose $2.51, or 3 percent, to $87.65 a barrel at 0206 GMT. Additionally, US West Texas Intermediate crude rose by 3.

In response to the current decline in global oil prices, India reduced its windfall tax on domestically produced crude oil on Sunday from Rs. 10,500 per tonne to Rs. 8,000. Additionally, it eliminated the jet fuel export tax and cut diesel export charges in half to Rs 5 per litre.

The advances result in increased revenue for both upstream and downstream businesses.

Oil well-drilling company ONGC was up more than 5% at Rs 133.50, Oil India was up 3% at Rs 179, while Indian Oil, Bharat Petroleum, Hindustan Petroleum, and Reliance Industries were all trading up to 1%.

Mangalore Refinery and Chennai Petroleum saw increases of 3% and 6%, respectively.

Along with a global firming up of energy prices, natural gas prices were increased sharply by 40% to record levels, which contributed to the momentum. In addition to being used to fuel cars with CNG, natural gas is also utilised to produce fertilisers and electricity. Therefore, the cost pressure would be felt by all businesses involved in these areas.

Recent price declines in crude oil and substantially higher taxes compared to previous year put pressure on oil stock prices.