New Delhi, Sept. 7 -- India's oil and gas sector is likely to remain under pressure in the near term as elevated crude prices, expensive imported LNG and weak fuel marketing margins squeeze downstream profitability, even as strong refining cracks provide some cushion, brokerage firm Equirus said in a research report.

Equirus said the current environment remains challenging for oil marketing companies (OMCs), with petrol marketing margins turning further negative and diesel margins remaining deeply negative. Integrated margins have also moderated from their recent peaks, suggesting that stronger refining economics may not be sufficient to fully offset pressure on the marketing side.

Refining economics, however, continue to offer some sup...