I didn't think that JPM was an oil company... hmmm.
DIMON: JPMorgan is prepared for $30 oil http://t.co/FsRYCtRylc
— Sam Ro (@bySamRo) October 13, 2015DIMON: JPMorgan is prepared for $30 oil http://t.co/FsRYCtRylc
— Sam Ro (@bySamRo) October 13, 2015
5 comments:
There was an argument that the prime target of Saudi steady supply even at low prices was to hurt Wall St. banks and hedge funds.
"It is also expected that big banks will pull the plug on lending to energy companies."
That already happened. From market leaders like Enron Oil and Gas, To dicey guys like Chesapeake the rates they pay now are onerous. All across the energy industry too. Natural gas is in pain. Solar City is having to pay over 8% on their debt and rising fast. Alot of these bio-fuel guys that just started their cellulose plants this year are probably going bankrupt if the prices stay low for longer since the government abandoned their bio-fuel program. The coal folks are hurting but that is mostly because of Obama admin policy. Now that prices are collapsing, it looks like even companies like Vestas (wind turbines) are having a hard time meeting last year sales while in past years renewables were growing like crazy. The audacious plans for long-range international transmission to make solar a viable option are dead in the water now since financing has dried up.
Ignacio, this a great article from BP on oil-macro that the guys at forexlive posted. They put a bit more nuance than the "Saudis are firmly in control" swing producer meme.
Thanks Ryan, will read it.
Ryan there is a lot of recent twitter push out of ABB wrt their new HVDC stuff.... perhaps in response to the recent weakness in orders you point out... too bad it seems like it was just starting to take off...
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