This multi-bagger energy stock soars despite weak market, delivers 219 per cent returns in just six months!

Companies across the value chain, especially crude oil refiners, have seen huge gains with record-high prices of crude oil.

Global economic concerns depressed the oil demand outlook while investors were looking forward to G7 Summit (June 26-28) this week for possible moves on the Russian oil exports. The G7 nations discussed a mechanism that would only allow the transportation of Russian crude & petroleum products sold below an agreed price threshold to be enforced by imposing restrictions on insurance & shipping.  

Oil prices rose about a per cent in the early trade after the Energy Minister of United Arab Emirates (UAE) stated that the major producer has no spare capacity. Companies across the value chain, especially crude oil refiners, have seen huge gains with record-high prices of crude oil. The benchmark sectoral indicator BSE Energy advanced more than 2.5 per cent. The shares of Mangalore Refinery & Petrochemicals hit 10 per cent upper circuit while Oil & Natural Gas Corporation (ONGC) surged over 6 per cent.  

Tracking a similar trend, the shares of Chennai Petroleum Corporation Ltd soared 9 per cent in an otherwise weak market. Its shares soared 219 per cent in just six months! Considering a one-month time period, the stock has jumped over 20 per cent. Chennai Petroleum Corporation Ltd is in the business of refining crude oil to produce and supply various petroleum products along with manufacturing & selling lubricating oil additives.   

Considering the positive long-term outlook for the energy sector as well as Chennai Petroleum Corporation Ltd, we suggest keeping a close eye on this scrip for the upcoming sessions.