Annual Information Service
India Oil & Gas
|Published by||Fitch Solutions, Inc.||Product code||177588|
|Published||annual subscription||Content info||103 Pages|
|India Oil & Gas|
|Published: annual subscription||Content info: 103 Pages||
Key View: The outbreak of Covid-19 and the measures put in place to prevent its spread are having large and disruptive impact on both the upstream and downstream sectors. The demand for both refined fuels and natural gas is set to contract in 2020, largely due to extensive travel restrictions and a sharp slowdown in economic activity in Q2. In response, Indian refiners are enacting steep run cuts, in an attempt to tackle the domestic oversupply and protect refining margins. The drop in demand is also undercutting performance of the upstream O&G sector, as low prices trigger steep cuts to spending and force majeures issued by buyers necessitate production shut-ins. That said, there are signs that the nadir for demand has been passed and as restrictions are unwound and the economy is allowed to normalise over H2, both the upstream and downstream sectors will begin to recover.