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<blockquote data-quote="Box Ox" data-source="post: 4393244" data-attributes="member: 48469"><p>Oil price crash going on right now too. Not good for US energy companies who have big debts coming due within the next 2 years.</p><p></p><p><a href="https://www.cnbc.com/2020/03/08/putin-sparks-an-oil-price-war-and-us-companies-may-be-the-victims.html" target="_blank">Putin just sparked an oil price war with Saudi Arabia — and US energy companies may be the victims</a></p><p></p><p>“Vladimir Putin just sparked what could end up being one of the ugliest oil price wars in modern history, and American oil and gas companies may be the victims.</p><p></p><p>This weekend <a href="https://www.cnbc.com/2020/03/08/opec-deal-collapse-sparks-price-war-20-oil-in-2020-is-coming.html" target="_blank">Saudi Arabia dropped the oil bomb.</a> It not only cut its forward crude price to Chinese customers by as much as $6 or $7 per barrel, but is also reportedly looking to raise its daily crude output by as many as 2 million barrels per day into an already oversupplied global market<em>. </em>Look out below.”</p><p></p><p>“Debt is the problem. The U.S. oil and gas industry has about $86 billion of rated debt due in the next four years, according to Moody's. Nearly all of that debt is either junk rated, or rated just above junk. Fifty-seven percent of that is due in just the next two years. As oil prices fall and credit markets tighten, many companies won't be able to refinance their debts or extend maturities. </p><p></p><p>Time is the only friend many companies now have. Most energy debt isn't due until 2022, so some producers may be able to hang on, hoping for a turn. But if a turn doesn't come, it will be brutal.”</p></blockquote><p></p>
[QUOTE="Box Ox, post: 4393244, member: 48469"] Oil price crash going on right now too. Not good for US energy companies who have big debts coming due within the next 2 years. [URL='https://www.cnbc.com/2020/03/08/putin-sparks-an-oil-price-war-and-us-companies-may-be-the-victims.html']Putin just sparked an oil price war with Saudi Arabia — and US energy companies may be the victims[/URL] “Vladimir Putin just sparked what could end up being one of the ugliest oil price wars in modern history, and American oil and gas companies may be the victims. This weekend [URL='https://www.cnbc.com/2020/03/08/opec-deal-collapse-sparks-price-war-20-oil-in-2020-is-coming.html']Saudi Arabia dropped the oil bomb.[/URL] It not only cut its forward crude price to Chinese customers by as much as $6 or $7 per barrel, but is also reportedly looking to raise its daily crude output by as many as 2 million barrels per day into an already oversupplied global market[I]. [/I]Look out below.” “Debt is the problem. The U.S. oil and gas industry has about $86 billion of rated debt due in the next four years, according to Moody's. Nearly all of that debt is either junk rated, or rated just above junk. Fifty-seven percent of that is due in just the next two years. As oil prices fall and credit markets tighten, many companies won't be able to refinance their debts or extend maturities. Time is the only friend many companies now have. Most energy debt isn't due until 2022, so some producers may be able to hang on, hoping for a turn. But if a turn doesn't come, it will be brutal.” [/QUOTE]
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