The Azerbaijan State News Agency

Sunset Oil America? Banks are preparing to defaults

Sunset Oil America? Banks are preparing to defaults

Baku, January 13, AZERTAC

World oil prices continue to decline, quotes fall due to lower forecast prices for “black gold” by Goldman Sachs. Meanwhile, US banks are preparing to defaults oil companies.

Additional pressure on prices had fires at refineries in Ohio and Pennsylvania, which reduced demand for oil in the United States.

Goldman Sachs analysts lowered the forecast for the next three months at $ 80 perbarrel of Brent to $ 42. At the same time, they note that oil should be about $ 40 perbarrel for most of the first half of 2015, before being struck by investments in shale industry.

Recent data on permits for drilling new oil and gas wells show that until the situation is catastrophic for the United States. The index rose slightly in December after a sharp drop in November, indicating a potentially rapid deceleration of shale oil and gas.

The weakness of the oil markets became evident last week when the first time since 2009 the entire oil sector was in contango, ie the price of tools for immediate delivery were more favorable than for delivery in the coming months.

Hope oil companies and producing countries associated with the response to the declining prices of OPEC, but Saudi Arabia, the world’s largest oil exporter, has repeatedly stated that it will not support prices by reducing production, while continuing to ignore the calls of other OPEC members, including Venezuela.

Traditional largest US banks were closely related to the energy sector of the country: they were engaged in underwriting bonds, advising on mergers, even financed the construction of housing for the oil industry. All this has long been a boon for banks that have struggled to expand the list of companies and individuals holding their money.

But the sharp, strong and long-lasting decline in oil prices has led to the fact that some energy companies are facing problems in servicing their huge debts, which means a greater likelihood of defaults.

Up to a full-fledged crisis in the energy sector still needs to take some time, but it is clear that while the energy boom in the banking sector has ended.

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