Reliance Industries Ltd (RIL) share price rose by 2.5% on Friday, March 6, achieving its second day of gains in a row after US Secretary of the Treasury Scott Bessent revealed that the Treasury Department is providing a temporary 30-day exemption for Indian refiners to buy Russian oil. This action was taken as the US aims to stabilize global energy markets in light of escalating tensions in the Middle East.
Calling India a vital ally of the United States, Secretary Bessent mentioned that Washington expects New Delhi to increase its import of American oil. This temporary solution will help ease the strain created by Iran’s efforts to hold global energy supplies hostage, believes Secretary Bessent.
Bessent said on X platform, “President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded. To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil.”
“This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea,” he added.
Additionally, market analysts suggest that the recent increase in RIL shares is driven by China’s suspension of fuel exports amid tensions between the US and Iran, enhancing refining margins for RIL’s facility in Jamnagar.
Analysts indicated that the previous decline in the stock price was overdone, and the company might actually gain from escalating crude oil prices in light of the current Iran conflict and disturbances in the Strait of Hormuz.
Investors expressed concern that supply interruptions in the area could lead to higher crude oil prices, impacting global markets. Nevertheless, market experts believe that for Reliance, which operates one of the largest refining and petrochemical operations worldwide, the circumstances could become advantageous.
JM Financial noted that the recent 8% dip in Reliance shares in the last month was unwarranted. The brokerage is of the opinion that the company is unlikely to suffer significant negative effects from rising prices of crude oil and liquefied natural gas.
On the contrary, it anticipates that the company will gain in the short term from higher diesel cracks and a potential increase in petrochemical margins.
“Assuming diesel crack sustains at ~USD30/bbl, RIL’s GRM could rise by USD 4-5/bbl. Every USD 1/bbl rise in RIL’s GRM on an annualised basis results in an increase in its annual EBITDA by ₹45 billion or 2.2% and increase in valuation by ₹29/share of 1.7%,” JM Financial said.
Reliance share price today
Reliance share price today opened at ₹1,392.25 apiece on the BSE, the stock touched an intraday high of ₹1,424.10, and an intraday low of ₹1,390.10.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Reliance shares has witnessed strong positive traction over the last two sessions, erasing the initial weekly losses and now placed with the weekly gains of over 2%.
“The stock has reclaimed its 20-DEMA, and considering the constructive setup on both daily and weekly charts, prices may extend the upmove towards 1,460 levels. On the downside, 1,380 is seen as immediate support,” said Bhosale.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
