Mar
21
Oil’s Bad Timing Puts Pressure on Drillers as Banks Review Loans
By-
Slide in oil prices could deter lenders from opening up credit
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‘The next month is going to be absolutely critical’: analyst
Photographer: Brittany Sowacke/Bloomberg
The rally in global oil prices has stalled at the worst possible time for explorers, just as banks reassess credit lines crucial to their growth.
This year’s reviews, due to start next month, will arrive with the industry nursing a nasty case of whiplash. Spot prices surged late last year on OPEC’s pledge to cut output, hitting $54.06 a barrel in New York. Since then, they’ve fallen 12 percent, undercut by rising U.S. rig counts. Futures contracts show longer-term prices deteriorating as well…
Oil’s Bad Timing Puts Pressure on Drillers as Banks Review Loans
