ONGC, OIL earnings hinge on upside in crude prices as production stagnates

With not much upside in output and gas prices weak, earnings are expected to be under pressure

Concerns for oil and gas upstream producers in India, such as ONGC, have risen owing to the slide in crude oil prices to below the $40-mark on Wednesday, from above $45 on September 1. 

ONGC shares are trading about 10 per cent lower in September, while Oil India has also dipped.

The rebound in oil prices — to $42-45 levels in recent days from the lows of $20 a barrel in March — had led to an improvement in Street sentiment, following which the ONGC stock gained up to 36 per cent as of August compared to its March lows. 

However, for further