"sell your assets".
oil up for 2factual reasons, not war speculations from anywhere...1--vehicles being bought up are bigger engine trucks/crossovers/suv/sedans/and muscle cars. 2---the money is drying up from banks to frackers/drillers at oil under on average $60 a barrel but more likely they want 65 plus. That's it---its fact---these short crazed reasons they put out that sound absurd to purposely trick investors and try and sound like a fluke absurd reason are put out just for that, to make investors think its short term dumb for oil to go up---read my lips----RISE IN OIL NOW IS BASED ON FACTUAL LONTERM REASONS---I gave you 2.
The procedure is intended to guard against bank failures, but in effect, it could force distressed oil and gas companies to prematurely sell off assets and/or lose access to their financing. “Workout’s job is to achieve the maximum recovery on the loan,” Bill White, Chairman of Houston branch of investment bank Lazard, told the FT. “The banking relationship with the borrower is not part of the agenda of the workout group, whereas the relationship banker will appreciate the fact this is a cyclical period.”
“One consequence of this would be that people are forced to sell assets in a market which many of us — including me — believe is at the bottom of the commodity price cycle,” he added.
But it is not as if regulators are off base. In Canada, the largest banks are reporting higher impairment charges on their portfolios as oil prices stay low. For example, TD Bank saw its impairment charges rise by two-thirds this quarter compared to the second. CIBC, RBC, and the Bank of Montreal all reported a sharp increase in impairment charges as well. Given the growing losses for energy lenders, the oil and gas industry could see access to credit much harder to come by in the weeks and months ahead.
Banks were more lenient in April when oil prices were a bit higher and many analysts expected prices to rise. This time around the pain is mounting and there will be a lot less leeway. Somewhere around 10 to 15 percent credit offered to drillers could be cut back on average, a move that could slash $15 billion in credit capacity, according to CreditSights Inc.
With other financial avenues cut off, indebted drillers could be left with no way out. “Nobody is in good shape with oil at $39,” CreditSights Inc. analyst Brian Gibbons told Bloomberg in an interview. “Most energy companies are shut out of the debt markets. There are few companies that can get a deal done right now.”
Even if banks wanted to lend to struggling oil and gas drillers, or were open to the idea of restructuring existing loans, there is another looming problem for the industry: the possibility of increased regulatory pressure on the banks exposed to energy loans. According to the FT, banking regulators are pushing banks to take a more conservative approach to their energy loans. If loans to indebted oil companies appear at risk, regulators want banks to move their loans into “workout” groups, which are run by “troubled asset specialists” with the mission to recover as much of the loans as possible.
More worrying for the oil and gas companies that are struggling to keep their lights on is the forthcoming credit redeterminations, which typically take place in April and September. Banks recalculate credit lines for drillers, using oil prices as a key determinant of an individual company’s viability. With oil prices bouncing around near six-year lows, more companies will find themselves on the wrong side of that equation.
In fact, about one-fifth of North American production is hedged at a median price of $87.51 per barrel. Smaller companies rely much more heavily upon hedging as they are more vulnerable to price swings and are not diversified with downstream assets. Across the industry, IHS estimates that smaller companies had about half of their production hedged at a median oil price of $89.86 per barrel in 2015.
But as those positions expire, any new hedges will be linked to current oil prices, which are now trading around $45 per barrel
More U.S. oil and gas companies could come under financial distress in the coming months as crucial hedging protection begins to expire.
Many companies had locked in high prices for their oil sales last year, allowing them a degree of protection as oil prices collapsed precipitously over the second half of 2014. Few, if any, hedged all of their production though, so revenues declined along with the oil price. Still, with some protection, the vast majority of companies (aside from a tragic handful) have not missed debt payments and have stayed out of bankruptcy.
That could become an increasingly tricky feat to pull off. As time passes, more and more hedges are expiring, leaving oil companies fully exposed to the painfully low oil price environment. “A lot of these smaller guys who had bad balance sheets have pretty good hedge books through full-year 2015,” Andrew Byrne, an analyst with IHS, told the Houston Chronicle. “You can't say that about 2016.”
here's where the $$$ dries up---and OPEC sees it coming--I say OPEC cuts in DEC. not before...this is crippling.---read on---
easily AAPL...this is so easy to see.---WITH FACTS on oil industry and consumer vehicle preferences in sales reports coming in.
I mean its the worst investor play you can do at this Over devalued oil price. OIL WILL AND MUST GO AS A MINIMUM WTI $50---What not to understand here? SA--IRAN--RUSSIA if when it goes there will keep it there with a cut too, days of under WTI $50 ARE GONE FOREVER---READ THESE LIPS Short player---go find another company or sector---play is dead. OPEC understands WTI 50-55 keeps USA frackers / drillers frozen and yet they still make good money, this under $50 is not acceptable to anyone in oil--OPEC or NON OPEC---That's the facts
Plenty of time---SOOOOO UNDERVALUED OIL NOW.
No oil fundamental content of facts just speculation, game over 2x in one year (Which was impressive to fool investors twice though). Sorry short guy, time to find a new sector. LONG USO OIL NOW!
ps...when you have a liberal media print barrage and there really is no oil fundamentals being used just speculation on other events with a attempted tie in to oil consumption. Well "the emperor wears no clothes" has to be said sooner or later, and that was last week. I base LONG USO OIL Share accumulation based on these false dips in oil price....you can too.
You can only reprint Greece, Iran, China news so many different ways right? ITS BACK TO WTI $50 FOR GOOD-----Just keep accumulating LONG USO OIL----You will be rewarded up from here----whenever your target is met. LONG STRONG ACCUMULATE HOLD USO OIL. Oh and buy yourself a POWERFUL V8 ENGINE Work or pleasure truck/SUV/ Crossover/ sedan or muscle car. and get driving--EVERYONE ELSE IS!!---SALES Report FACTS show.
Sentiment: Strong Buy
this is all you need to understand, these facts are showing the trend in larger vehicles sales that are occurring and are growing and will continue. This will and is starting to drive the demand for crude going forward, the 2x corrections of this yr both on non oil fundamentals as experts agree are great and huge dip opportunities to get in USO OIL and HOLD LONG----You will be rewarded richly in not so long future. This is factual sales and consumer data.
and remember too, driving 55-60 is a joke now, speed limits have increased by legal law to 70 most states, 75mph some, and 80 mph in a few. I mean that's going to be some very very big consumption. very big. ts coming, just keep buying here is fire sale USO OIL---and be patient---hold.
YOU WILL MAKE TONS$$ of money going LONGUSO OIL, you just have to ignore the 2 fake non oil fundamental print the short biz media repeats over and over and stay the course, keep buying on dips and do not sell, if I had a penny for every Bro decay USO post Id HAVE $10 DOLLRS NOW in 10m since here.These posters here but a few have short objectives and spew along with the business short oil lib china, Greece, iran, etc all of which are speculation, oil must be used for industry and consumers, and the trend is v8 vehicles every month being bought and exploding in sales too. last report was a big surprise for august yet, watch the year end clearance f the 2015 trucks, suv, sedans and muscle cars, the new ones will be really moving 2016, new styles will sell.