Even with clean balance sheets, oil and gas drillers exposed to rate increases

Gaurav Sharma, Assistant Director, Acuity Knowledge Partners recently shared his expert insights on how oil and gas producers are facing headwinds from rising interest rates with S&P Global. According to him, if demand for oil and gas declines, producers could see their profits shrink and their share prices fall.

‘If this environment sustains for a longer period, it will eventually impact oil and gas companies' future cash flows (due to higher interest rate payout and lower income due to low demand and prices)’, he adds.