CLSA Favors ONGC and Oil India as Crude Tightens

CLSA is a brokerage that studies companies and oil prices.

It thinks the oil market may become tighter in the next two to three months.

Countries have been using emergency oil reserves to replace supplies affected by disruptions near the Strait of Hormuz.

Those reserves may become harder to use, so less extra oil could be available.

Asian countries may also buy more oil, especially if China increases imports.

CLSA believes this could push crude oil prices higher.

It is especially positive about ONGC and Oil India, which produce oil and gas.

ONGC has the larger possible gain in the report, while Oil India may benefit from future production and refinery growth.

These are brokerage estimates, not guarantees that the shares or oil prices will rise.