Soft crude prices to keep outlook for Indian upstream sector negative: Icra

OPEC had agreed to cut total crude oil production of its member countries by 1.2 mn a day

Outlook for the Indian upstream sector remains negative for the near to medium term due to soft crude prices, rating agency ICRA said in a note on Monday.

“The Indian upstream and oilfield sector is going through tough times, impacted by the challenging environment due to the soft global crude prices. This situation will continue in the near to medium term, despite a modest increase in crude prices post-Organisation of the Petroleum Exporting Countries (OPEC) deal,” ICRA said in its statement. The rating agency expects the profitability of domestic upstream companies, to be subdued in the near to medium term.