RIL at record high, ONGC jumps 2% after US raids Venezuela

Shares of oil-linked companies surged in early trade on Monday, January 5, after reports that the US carried out military operations in Venezuela, leading to the capture of President Nicolás Maduro and the First Lady. Analysts believe the geopolitical development could have implications for global oil supply, benefiting select Indian energy stocks.

Oil and Natural Gas Corporation (ONGC) shares jumped nearly 2 percent to ₹246.80, emerging as the top gainer on the Nifty 50 in early trade. Reliance Industries (RIL) rose over 1 percent to touch a fresh 52-week high of ₹1,611.80 per share.

The rally in Reliance Industries pushed its market capitalisation closer to the ₹22 lakh crore mark, reinforcing its position as India’s most valuable listed company.

According to reports, the US conducted an operation named ‘Absolute Resolve’, involving airstrikes across Venezuela and the detention of the country’s leadership, following months of escalating political and economic pressure.

Commenting on the development, brokerage firm Jefferies said a potential US-led takeover of Venezuela could result in the lifting of sanctions on Venezuelan crude exports. This, in turn, may create opportunities for refiners like Reliance Industries to source crude oil at a discount of $5–8 per barrel to Brent, supporting gross refining margins.

Jefferies also noted that ONGC could benefit through the recovery of approximately $500 million in unpaid dividends from the San Cristobal field in Venezuela.

Oil prices edged higher on Monday as markets assessed whether the political upheaval in the OPEC member nation would disrupt crude shipments. However, Jefferies cautioned that in the medium term, a revival in Venezuelan oil output could add to global supply and exert pressure on crude prices.

Meanwhile, US President Donald Trump said the US would oversee an interim administration in Venezuela, stating that the country’s oil resources would be brought back to global markets.

Market participants continue to track developments closely, as shifts in sanctions policy and crude supply dynamics could influence both oil prices and energy stocks in the coming months.

Disclaimer: The views and investment opinions expressed by analysts are their own. Investors are advised to consult certified financial advisors before making investment decisions.