Could falling oil prices spark a financial crisis?

Friday, December 5th 2014 - 06:50 UTC

Full article 6 comments

The oil and gas boom in the United States was made possible by the extensive credit afforded to drillers. Not only has financing come from company shareholders and traditional banks, but hundreds of billions of dollars have also come from junk-bond investors looking for high returns. Read full article

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ChrisR
The “Doomsayer” Nick Cunningham is back with his whataboutery: the oil business is going to hell in a handcart: but not for three years, probably.

Small oil companies are at risk, but they are ALWAYS at risk and high risk bonds at exactly that: HIGH RISK!

It would only take the Fed to raise the interest rates and most of this would go away.

My bet is they start raising them in the first quarter of next year.
Dec 05th, 2014 - 10:02 am - Link - Report abuse 0
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Briton
I did suggest as low as $50 dollars a barrel,
it may not get that far,
but one would suggest that sooner or later ??

and that is what the oil rich Arabs are waiting for,
[][ the collapse of the smaller ones ]
still,
the world in its madness has gone to war, for a lot less,
just a thought.
Dec 05th, 2014 - 01:19 pm - Link - Report abuse 0
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Klingon
So lets get this straight. The author is worried about oil companies turning a profit..
Don't you think it is better that the rest of the masses do not have to pay through the nose to fuel up their cars?
That money can then be spent in other areas of the community unike oil companies that suck everything dry for the exclusive few who own them!
Dec 05th, 2014 - 05:16 pm - Link - Report abuse 0
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ChrisR
@ 3 Klingon

I seem to remember very recently how pleased you were at the opportunities you would get to buy things cheap and improve your return.

Am I correct?
Dec 05th, 2014 - 07:07 pm - Link - Report abuse 0
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golfcronie
@4
Klingon is that not an outer space name for a character, seems apt to me.
@3
Do you know how many everyday products are made with refined oil?
42 gallons produces 19.4 gallons of petroleum spirits, the remainder produces 6000 other products, yes 6000 other products. It is not only the oil companies making money the government slap taxes on all the products.
Dec 05th, 2014 - 08:05 pm - Link - Report abuse 0
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Leyla
Unfortunately today the situation with oil price is quite unstable. Due to the problems with Russia, the price is getting lower every day. It can have a good impact on many spheres, however companies who deal with oil-production have many problems. They can not set so low price, because their profit will be too small. Also it can have a bad impact on the labor market. Because if this sphere does not bring enough money, it can be closed or replaced. Today many people use a financial help of http://northnloans.ca/get-a-loan-in-toronto.html , and this is just a beginning. That is why the government needs to make a serious step and solve this growing problem.
Dec 09th, 2014 - 06:57 pm - Link - Report abuse 0
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