Shares of upstream oil and gas companies Oil and Natural Gas Corporation (ONGC) and Oil India surged as much as 6% in intraday trade on Monday after oil prices jumped after OPEC+ announced unexpected output cuts.

Among individual stocks, Oil India rose 6.2% to Rs 267.45, while ONGC rose 4% to Rs 157. The S&P BSE Sensex was down 0.02% at 58,979 at 9:27 am.

Brent crude futures rose $5.16 to $85.05 per barrel, while US crude gained $4.88 to $80.55 per barrel on reports that oil production would drop by about 1.16 million barrels daily.

The change came ahead of a virtual meeting of the OPEC+ ministerial group that includes Saudi Arabia and Russia. Reuters reported that the group is expected to stick to the 2 million bpd cuts already in place through the end of 2023.

According to investment firm Pickering Energy Partners, the latest production cuts could boost oil prices by $10 per barrel. The news agency reported that Goldman Sachs raised its forecast for Brent crude oil prices to $95 per barrel by the end of the year and $100 by 2024.

Meanwhile, domestic natural gas prices are tentatively set at $8.6/mmBtu from Apr-23 to Sep-23. The cap has been lowered slightly from $12.5/mmBtu to $12.1/mmBtu.