Oil and gas index plunges 5% on trade war: Things to know amid economic turmoil

Shares of oil and gas companies declined nearly 5% on Monday, April 7, following a crash in the benchmark equity indices as the trade war escalates and oil prices slip more than 3%.

Though imports of oil, gas and refined products were exempted from Trump’s tariffs, slow economic growth and further escalation of the trade war could weigh on oil prices.

The world’s top oil exporter, Saudi Arabia, on Sunday had cut crude oil prices for Asian buyers in May to their lowest in four months, following a decision by the OPEC+ oil group to speed up oil output hikes.

Meanwhile, US Federal Reserve Chairman Jerome Powell on Friday had said that the tariffs could drive up expectations for inflation, and lower rates could fuel still more price increases.

Following these, the NIFTY Oil and Gas index was trading 4.71% lower on Monday, while BSE Oil and Gas tumbled 4.79% during the early trading session.

The Nifty Oil and Gas index has declined almost 20.38% since October 2024. Year-to-date the sector is down 9.75%. In the last week, the sector has lost over 8%.

The equity benchmark indices on Monday crashed during the opening session. NIFTY50 plunged over 5% while SENSEX declined over 3,000 points.