Moody’s: Low prices increase financial risks for oil and gas companies
Baku, March 11, AZERTAC
International credit rating agency Moody’s announced that low oil prices increased financial risks for oil and gas companies in 2020.
In the statement made by the credit rating agency, it was stated that the sudden change in the oil supply demand balance did not reflect the structural change of the global oil industry, and no change is expected in the long-term bases of oil companies.
The statement stated that oil and gas companies could manage their liquidity levels in 2020, but companies are expected to reduce their capital expenditures.
Moody’s statement noted that low oil prices increased financial risks for oil and gas companies in 2020.
The statement noted that increased volatility in oil prices is expected to be directly reflected in oil and gas companies’ exploration and production investments and refinancing needs between 6 and 12 months.
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