Global oil & gas prices surged sharply amid concern over supply disruption following the geopolitical conflict in Europe. Russia is a major supplier of oil & gas to the world, Europe and it constitutes 12%, 31% of oil requirement, respectively. Similarly, for gas supply, the world and Europe are dependent on Russian supply for 17% and 33% of its total requirement, respectively. Brent oil prices are currently trending at multi-year highs whereas LNG futures are also trading at elevated level. Surge in oil & gas prices will benefit upstream and gas utility companies as realisation will be higher. On the CGD front, companies with higher industrial segment share in the sales mix will be adversely impacted if prices sustain at higher levels.
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