Crude Oil Price Horror Show? Why Alternative Investments Might Be Your Nervous-Proof Shield
What happens when everything that can go wrong does go wrong?
It is as if the whole world is facing a bad workday, jumping from one crisis to another. With the beginning of yet another conflict in the Middle East between Iran and Israel, thousands stand to lose their lives. And from the comforts of our home, a luxury we often undervalue, we watch our investments lose their cool.
Just like Hansel comes with Gretel and Joey comes with Chandler, a crude oil price surge comes when missiles fly. In such a scenario, like the heartbroken partner of a commitment phobe, investors are asking, What Now?
Crude Oil Price's Up, So Is Your Stress - But Should It Be?
The crude oil inflation impact is pervasive. It is felt in almost all sectors of the economy. When crude oil prices surge, it impacts your pockets not only through your fuel bill but also through the poor performance of your investments. But why?
- Fuel with a main-character energy: Crude oil is the most popular fuel source. From transportation to the manufacturing industry, components of crude oil are used as a raw material in almost all industries. Therefore, volatility in crude oil prices will also impact sectors that are not directly connected to it.
For example, suppose the price of crude oil increases. Petroleum jelly is a component of crude oil, and it is used in the beauty industry. Therefore, as petroleum jelly becomes more expensive, the beauty industry will also be impacted.
- Crude oil and inflation = Karan Arjun: We all remember the popular Bollywood dialogue, Mere Karan Arjun Ayenge! A crude oil price increase always results in inflation; they always come together. When crude oil prices increase, the cost of everything goes up. This causes a general increase in price level, which is the literal definition of inflation.
For instance, when crude oil prices increase, the cost of raw materials and transportation increases. Therefore, the cost of the final good will also increase. This results in inflation. Every 10% increase in crude oil prices is expected to increase wholesale inflation by 80 to 100 basis points, and consumer inflation by 20 to 30 basis points1.
Now, let us take a look at what is currently happening to crude oil prices.
Crude Oil Price Today = Bloodbath
On Thursday, 19 June 2025, crude oil prices jumped 3%2. Unlike your erratic partner, who does not give any disclaimer before dropping the “I need to talk” bomb, crude oil price has two indicators. Any volatility in this means a volatility in the crude oil market.
1. Brent Oil
Brent is a type of crude oil extracted from the North Sea. Two-thirds of the global crude oil suppliers decide the price of their oil based on Brent3. If the oil market were an examination hall, Brent would have been the person whom everybody wanted to sit beside. Winky Face!
From 13 June 2025 to its current trading on 20 June 2025, Brent has changed by 10.74%. The table below shows the change in the price of Brent over the past week.
| Date | Opening Price (USD) | Change (%) |
| 20 June | 77.42 | -2.59% |
| 19 June | 76.50 | +2.80% |
| 18 June | 76.88 | +0.33% |
| 17 June | 74.16 | +4.40% |
| 16 June | 78.31 | -1.35% |
| 13 June | 70.50 | +7.02% |
2. West Texas Intermediate
It is also known as WTI. Being the lightest variety of crude oil, it is as Texan as Sheldon Cooper4. It acts as the benchmark of the US markets.
Just like Brent, WTI has changed 10.41% since 13 June 2025. The table below gives a detailed overview.
| Date | Opening Price (USD) | Change (%) |
| 20 June | 73.82 | -0.33% |
| 19 June | 73.88 | +0.44% |
| 18 June | 74.00 | +0.31% |
| 17 June | 69.66 | +4.30% |
| 16 June | 75.50 | -3.40% |
| 15 June | 74.77 | +2.01% |
| 13 June | 67.50 | +6.98% |
3. Cameo entry: Oil stocks
Although not a popular kid like Brent and WTI, oil stocks give us an inside look at the market sentiment. It's like reading the personal journal of investors to understand what they are thinking.
Think about it! If the crude oil price increases, investors will invest more in oil stocks today. An increase in crude oil prices means the oil companies will earn more profit. As they become more profitable, investors will want to invest more in them.
Let us take a look at how the Oil and Natural Gas Company (ONGC) stocks in India have performed on the National Stock Exchange lately.
| Date | Opening Price (INR) | High (INR) | Low (INR) | Previous Closing Price (INR) |
| 19 June | 250.50 | 253.00 | 248.20 | 250.36 |
| 18 June | 254.03 | 255.89 | 249.77 | 252.31 |
| 17 June | 256.94 | 257.09 | 251.55 | 256.79 |
| 16 June | 253.99 | 257.50 | 252.19 | 251.51 |
| 13 June | 255.55 | 255.95 | 249.12 | 247.88 |
Not just ONGC, on Monday, 16 June 2025, the shares of ONGC and Oil India gained up to 3%. So, oil stocks soared when crude oil prices jumped. What about others?
Stocks Slip, FDs Snore - Enter Chaos Mode
When the crude oil price surges, oil stocks and the stocks of other industries behave like estranged brothers in a property dispute. While oil stocks increase because their profitability increases, the stocks of other industries take a hit.
On Thursday, 19 June 2025, the small-cap and mid-cap segments suffered huge losses. Sensex and Nifty also ended on a low5.
| Benchmark | Closing (points) | Closing (INR) | Percentage |
| SENSEX | 83 | 81,361.87 | 0.10 |
| NIFTY 50 | 19 | 24,793.25 | 0.08 |
Investors lost around INR 4 lakh crores in a single day when the total market capitalisation of companies listed on the Bombay Stock Exchange (BSE) dropped to INR 442.5 lakh crores.
After reading this, you might think the unsolicited investing advice from your neighbourhood uncle was right. Low-maintenance FDs are the best. Well, let me burst that bubble, too.
So, remember oil price surge results in inflation. Rising inflation means the cost of goods and services is increasing, but the interest rate of FDs remains fixed. Let’s take an example.
Suppose you made a one-year fixed deposit of INR 1,00,000 and the rate of interest is 4%. At the time you made the FD, inflation was 2%. So, the return you expected was INR 2,000
Expected Real Rate of Return = 4% - 2% = 2% Expected Return = INR 1,00,000 x 2% = INR 2,000 |
However, now due to the rising crude oil price, the inflation has increased from 2% to 3%. Therefore, your actual return would be:
Expected Real Rate of Return = 4% - 3% = 1% Expected Return = INR 1,00,000 x 1% = INR 1,000 |
Now you might wonder, with inflation, stock market dump, and inflation-eaten FDs, does anything work during a crude oil price increase?
Alternatives: The Low-Drama, High-Return Cousins
It is as if you are in a K-drama where the best friend (dependable FDs) and boyfriend (happening stocks) are ghosting you at the same time. However, like any good K-drama, there must be that one hero who comes in to give you the low-drama life you deserve. Enter the best fixed-income investments in India with non-market-linked returns.
Should volatile market conditions hinder your early retirement plans? Definitely not. Therefore, to invest during market volatility, some points can come to your aid.
1. Back-up: What do you do when your best friend is busy? You hang out with other friends or acquaintances. Similarly, diversification will give you investments to fall back on when the main friend is absent. For example, when SBI reduced its FD rates by 20 basis points, more than 260 debt-mutual funds outperformed its returns6.
2. Choose Aditya, not Anshuman: Remember rooting for the low-drama Aditya during Jab We Met and hating the volatile Ayushman? Similarly, during times of market instability, diversification in the less volatile non-market-linked securities can come to your aid. Let’s explore some of these fixed-income generating securities in detail.
4 Offbeat (but Smart) Ways to Invest When Oil Hits the Fan
Let’s take a look at the top safe investments in India 2025. These assets might make your portfolio stronger than the Hulk.
1. Corporate Bond for Beginners
Bonds are a type of debt instrument that is issued by companies, government entities, etc. Bonds issued by corporations are called corporate bonds. Although they are listed and traded like stocks, unlike stocks, they give fixed interest because they are a type of loan.
For example, if you invest INR 1,00,000 in a 6% Corporate bond. You can earn INR 6,000 annually.
2. Securitised Debt Instruments (SDIs)
SDIs are like Sundaes, where you get three or four ice cream flavours in one sitting. Imagine SDIs as a basket where different instruments of the same asset category are placed.
For example, LoanX by Grip is a type of SDI that is a diversified pool of loans that can provide up to 14% interest.
3. Baskets
If SDIs are Sundaes, Baskets are like Buffets. With SDIs, you get different options for the same asset. Whereas, in Baskets by Grip, you can diversify across assets.
For example, Baskets in Grip can help you diversify across bonds and SDIs.
4. Money Market Instruments
It refers to assets that mature within a year. These are often issued by government bodies and are considered safe investments. Investors can invest in these assets directly or through Money Market Mutual Funds. The category average returns of these mutual funds are given below.
| Period | Category average return (%) |
| One year | 7.42 |
| Five years | 5.81 |
| Six years | 6.13 |
Want Calm In Chaos? Here Is Where To Start
Now, arises a more important question; Who is your Aditya? That question is, Where to Find Him? Well, what if I tell you, just like Tinder or Bumble, we have a happening place for securities as well?
From corporate bonds to baskets, you can get everything from the Grip Invest Platform. The table below compares the key parameters of assets on Grip.
| Name | Interest (%) | Minimum Investment | Number of investors | Backed by |
| Baskets | 11% to 14% | INR 5,000 | 100+ | RBI and SEBI |
| Corporate Bonds | 9% to 14% | INR 1,000 | 30,000+ | Rated securities |
| LeaseX | Up to 16% | INR 1,00,000 | 3,000+ | SEBI |
| LoanX | Up to 14% | INR 1,00,000 | 1,900+ | RBI and SEBI |
| InvoiceX | 10% to 14% | INR 1,00,000 | 100+ | RBI and SEBI |
Conclusion
Even to talk to your therapist about the heartbreak and stress caused by the crude oil news today, you would need money. Therefore, rather than crying your eyes out with a tub of ice cream while watching your stocks plummet, it's better to switch to a safe investment strategy and bond with a Bond.
And in your search for that perfect low-maintenance bond, don’t forget to check out the Grip Invest!
FAQs
1. Should I change my investment strategy when oil prices rise?
Crude oil price rise triggers a chain of market reactions. From plummeting oil stocks to ineffective FDs, the volatility of oil prices calls for a change in investment strategy. Diversification and looking out for alternative investments might aid in building a strong portfolio.
2. Are alternative investments safer than stocks during volatility?
Non-market-linked investments might be safer than stocks during volatility. However, it is important to remember that almost every investment medium has a degree of risk. Therefore, optimum market research is necessary to make the right investment decision.
3. Can I invest small amounts in corporate bonds or SDIs?
Investors can invest according to their requirements in a corporate bond or a securitised debt instrument (SDI). On the Grip Invest Platform, corporate bond investment can start at INR 1,000. However, the minimum investment for SDIs is INR 1,00,000.
References:
1. Livemint, accessed from: https://www.livemint.com/economy/crude-oil-india-gdp-estimates-icra-economy-11750340362792.html
2. Reuters, accessed from: https://www.reuters.com/business/energy/oil-falls-investors-weigh-chance-us-intervention-iran-israel-conflict-2025-06-19/
3. Statista, accessed from: https://www.statista.com/statistics/262861/uk-brent-crude-oil-monthly-price-development/
4. Statista, accessed from: https://www.statista.com/statistics/262861/uk-brent-crude-oil-monthly-price-development/
5. Livemint, accessed from: https://www.livemint.com/market/stock-market-news/sensex-nifty-50-slip-mid-small-caps-bleed-investors-lose-4-lakh-crore-10-key-highlights-from-indian-stock-market-11750327328323.html
6. Economic Times, accessed from: https://economictimes.indiatimes.com/mf/analysis/over-260-debt-mutual-funds-beat-fixed-deposits-rate-in-2-years-should-you-switch/articleshow/121281495.cms?from=mdr
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This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit www.gripinvest.in
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