But lower crude oil prices can be a double-edged sword for the oil producer. After all, a sharper decline in broader crude oil prices will mean lower price realizations. Needless to say, investors would do well to follow the trend in oil prices. Of course, with ONGC, oil prices cannot increase too much as well. In any case, the stock is discounting a much lower net crude realization than the prevailing crude oil prices, pointed out SBICAP’s analysts.

Source: Mint June 10, 2019 17:15 UTC