US OIL DEFAULT
Moody's Investors Service says it expects more US oil companies to default as banks tighten lending standards and as contracts that locked in higher crude prices for future production start to expire, according to Fuel Fix.
The agency's oil and gas liquidity stress index rose to 10.4% in June, up from 3.8% a year ago. While Moody's predicts that the energy sector will continue to be a primary driver of defaults in 2016, its stress index is still well below the index's peak of 26% during the 2009 financial crisis.
On Aug. 3, US crude prices fell to $45 a barrel. In July, the average price was $60 a barrel. Banks are starting to tighten up their lending standards, further draining liquidity out of the market.
Fuel Fix reported that, in April through June, seven defaulting companies included Halcon Resources Corp., Midstates Petroleum Corp., Sabine Oil & Gas Corp., Venoco, American Energy Partners' Woodford unit, Warren Resources, and RAAM Global Energy Co. In June, Sabine filed for Chapter 11 bankruptcy protection, becoming the sixth public American oil producer to do so in 2015.
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PLATTS - National Australia Bank announced Thursday it will no longer provide financing for new thermal coal projects.
Petrobras and ExxonMobil signed a memorandum of understanding regarding a strategic alliance to jointly identify and evaluate potential business opportunities.
ExxonMobil Development Africa B.V. has acquired a 25 percent indirect interest in Mozambique’s gas-rich Area 4 block from Eni and assume responsibility for midstream operations.
U.S. Rig Count is down 1 rig from last week to 930, with oil rigs down 4 to 747, gas rigs up 3 to 183, and miscellaneous rigs unchanged. Canada Rig Count is up 19 rigs from last week to 238, with oil rigs up 22 to 134 and gas rigs down 3 to 104.