It made that move because of weakening demand as COVID-19 cases surge in places like Europe and India causing more people to stay home to help slow the spread. Several tumbled by more than 10%, including, With demand slowing and supplies likely rising, it's putting renewed pressure on financially weak oil companies. Occidental Petroleum also has a mountain of debt coming due next year. Cumulative Growth of a $10,000 Investment in Stock Advisor, Why Oil Stocks Are Getting Clobbered Today @themotleyfool #stocks $RIG $QEP $KOS, Transocean (RIG) Q1 2021 Earnings Call Transcript, Transocean (RIG) Q4 2020 Earnings Call Transcript, Why Transocean Stock Tanked 10% at the Open Today, Investors Beware! Oil supplies will continue declining because investors are still unwilling to invest in new drillings for years to come until they are sure of stable oil prices at whatever levels they prefer . Stock Advisor launched in February of 2002. LINN Energy LLC, C&J Energy Services, Ltd., Penn West Petroleum Ltd (USA), BP Prudhoe Bay Royalty Trust, Breitburn Energy Partners LP, … With those two companies apparently on their way to joining a growing list of oil companies in bankruptcy, it's renewing concerns that more might need to file in the coming months to restructure their debt. The first is that it is becoming apparent that the trade war with China will be lengthy. , it's renewing concerns that more might need to file in the coming months to restructure their debt. Wed, May 5th 2021. Crude oil prices are tumbling today. The drop in the price of crude sent most oil stocks down today, though it had the greatest impact on SM Energy and Laredo Petroleum, which declined about 10% by mid-afternoon. Finally, Callon Petroleum also hired advisors to help restructure its debt. Matthew is a senior energy and materials specialist with The Motley Fool. Meanwhile, Bloomberg made a similar report on Chesapeake Energy (OTC:CHKA.Q). U.S. oil was also down 12 cents, or 0.2%, at $64.48 a barrel, having fallen 0.3% the … The last barrel of oil will always be from MENA region: APICORP. Several have been injured and hundreds evacuated to safety from the blaze in West Java province. Leading the downward spiral were Occidental Petroleum (NYSE:OXY), Callon Petroleum (NYSE:CPE), Gulfport Energy (OTC:GPOR), Centennial Resource Development (NASDAQ:CDEV), Oasis Petroleum (NYSE:OAS), and Denbury Resources (NYSE:DNR). Given its debt issues, Callon is another bankruptcy candidate. it can refinance some of that because investors seem more willing to continue providing capital. You can follow him on Twitter for the latest news and analysis of the energy and materials industries: This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. Crude oil prices & gas price charts. Meanwhile, market forecasters expect demand in the U.S. to hit the brakes due to the end of the summer driving season. It had been down to $10.26 at the low. Stock Advisor launched in February of 2002. The bottom line? Denbury Resources has already warned investors that it might not be able to continue as a going concern. Oil futures rise as sources say API data show weekly U.S. crude supplies down 7.7 million barrels 4:44 p.m. May 4, 2021. The company had hoped to replenish its financial resources by selling its water infrastructure for $225 million, but that deal fell through due to challenging market conditions. The effect of this may be counter-balanced in the short term by the massive amount of surplus oil which is currently being stored around the world. Monday's panic in the oil market was exacerbated by May futures, which were going to expire later on Tuesday. The company has a boatload of debt maturing in the coming years, some of which it's trying to restructure via a debt exchange. The downside of saving consumers from oil price hikes. The company had $522 million of borrowings on that facility at the end of the first quarter, leaving it with a dangerously low level of liquidity. If it can't address its debt, which is more likely if oil prices keep falling, it might have no other choice but to file for bankruptcy. Get the latest commodity trading prices for oil, gold, silver, copper and more on the U.S. commodities market and exchange at CNN Business. Hiking duty and not allowing OMCs to pass it on to consumers is a bad move. Oil market speculators got a healthy dose of reality over the past 24 hours as reports surfaced that a couple of financially challenged drillers are about to file for bankruptcy. Why Oil Is Down: WTI crude oil prices plunged 8% this week, from $53.20 a barrel on Monday to a low of $49.05 today (Thursday, March 9).The shocking fall … While customs, cess and excise duty hikes are levied by the central government, state governments impose value added tax (VAT). Oil down is the national dish of Grenada, the "Spice Isle" in the Windward Islands of the Lesser Antilles within the West Indies in the Caribbean Sea.. Oil down is a stew of breadfruit, salted meat, chicken, dumplings, callaloo, and other vegetables, all stewed in coconut milk, herbs, and spices to make a hearty and flavorful one-pot meal. Oil prices and buybacks make ConocoPhillips a buy, Bank of America says. Why Oil Prices Plunged Today ... Stocks plunged late Wednesday and oil opened up sharply down on Thursday. Oil price charts for Brent Crude, WTI & oil futures. While oil prices were relatively calm -- WTI was roughly flat while Brent was down slightly -- rumors were swirling in the industry that two deeply indebted producers were about to file for bankruptcy despite the recent run-up in crude prices. That news deflated speculators who bet that troubled drillers might make it through this downturn thanks to the recent spike in oil prices. Image source: Getty Images. . Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Because of internal strife, analysts have until recently assumed that Libya’s output … QEP Resources is also facing a financial crunch because of lower oil prices. If crude keeps sinking, it could cause even more companies to file for bankruptcy. It's a grim situation playing out in the oil market, grabbing the eyeballs of the entire investor fraternity and defying logic, said Sugandha Sachdeva VP for Metals, Energy & Currency Research, Religare Broking. The WTI June 2020 crude oil futures contract is at $10.63 -0.94 or down -8.12% tonight. Gulfport's banks reduced its credit facility's borrowing capacity from $1 billion to $700 million, which cut its liquidity in half to just $269 million. Callon offered a debt exchange to help reduce its outstanding borrowings and push out some of its nearest-term maturities, but it has since terminated that offer. Capital Connection. The shares of oil companies were trading lower on Monday following a dip in oil prices after the U.K. Health Minister Matt Hancock warned of a new coronavirus … Those reports weighed on financially challenged producers today. Market data powered by FactSet and Web Financial Group. Energy news covering oil, petroleum, natural gas and investment advice The company wrote in its annual report that it has a "substantially diminished" ability to repay, refinance, or restructure the $584.7 million of its debt that will mature next year. On top of that, bankers cut its borrowing base from $2 billion to $1.7 billion. Saudi Arabia reduced its official selling price for oil exported to Asia by the most since May and cut its price to U.S. customers by the most in six months. The company already hired advisors to potentially restructure its debt, which it might need to do via bankruptcy. Several companies have filed for bankruptcy this year, causing concern that Transocean might be next. London (CNN Business) Oil prices have suffered their biggest fall since the day in 1991 when American forces launched air strikes on Iraqi troops following their invasion of Kuwait. Leading the downward spiral were, With those two companies apparently on their way to joining a growing list of. Returns as of 05/12/2021. Market data powered by FactSet and Web Financial Group. Oil market speculators got a healthy dose of reality over the past 24 hours as reports surfaced that a couple of financially challenged drillers are about to file for bankruptcy. Callon offered a debt exchange to help reduce its outstanding borrowings and push out some of its nearest-term maturities, but it has since terminated that offer. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Weighing on pricing was tepid demand, which led Saudi Arabia to slash the price at which it sells its oil. Although it’s come roaring back from that low, up 75%, the share price is still down … Because of that, investors should steer clear of financially troubled oil companies, given the increased likelihood that their stocks could go all the way to zero if market conditions get much worse. This year's sell-off has hit the, causing concern that Transocean might be next. However, the company does. demand crashed globally. From its 2020 high on 15 January until the low on 23 March, the Oil Search share price crashed 76%. Unfortunately, they haven't been successful in working with bondholders. On top of that, bankers cut its borrowing base from $2 billion to $1.7 billion. This year's sell-off has hit the offshore drilling market particularly hard. Libya is Back. Tue, May … Matthew is a senior energy and materials specialist with The Motley Fool. It had hoped to chip away at that number by generating free cash, but that will be harder to do if oil prices fall too much further. Markets: The fireball injured several people and forced nearly … He graduated from Liberty University with a degree in Biblical Studies and a Masters of Business Administration. As of 1:07 p.m. EDT, Brent futures for November delivery were down 3.6% to $42.49, while West Texas Intermediate -- the key U.S. oil benchmark -- was down 4.2% to $39.64 for October delivery. Crude oil prices tanked on Friday, with both WTI (the U.S. benchmark price) and Brent (the global benchmark) tumbling more than 8.5% by 11:30 a.m. EST. Though, on a positive note, the company recently received a $170.7 million tax refund, which will enable it to repay some bonds that mature next March. The word Oil on a display board with a red down arrow next to it. We’re motley! Meanwhile, offshore-focused oil producer Kosmos Energy is in a similar boat. … You can follow him on Twitter for the latest news and analysis of the energy and materials industries: This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. Why oil is down today: Crude oil prices continue to plummet today (Wednesday) as West Texas Intermediate dropped to $86.83 per barrel for November delivery … Here’s why…. Another reduction would likely force it to file for bankruptcy. . These Energy Stocks Could Go Bankrupt in 2021, Why Transocean Stock Rose 25% in December, Copyright, Trademark and Patent Information. Since the lifting of the crude oil export ban in 2016, U.S. oil exports to Asia have gone from near zero to 45% of total exports. The company has a boatload of debt maturing in the coming years, some of which it's trying to restructure via a debt exchange. Making matters worse, oil companies in the U.S. appear to be ramping up their drilling activities, implying a future rise in supplies at a time when demand is cooling off. However, that's a fraction of the nearly $1.9 billion it owes creditors, with most of that coming due over the next three years. Why Marathon Oil (MRO) Stock is Down Today. Unfortunately, they haven't been successful in working with bondholders. Oil prices are dropping because higher American oil production is offsetting the OPEC production cut. TOKYO: Oil prices dropped for a fifth day on Thursday after official data showed a sustained rise in U.S. crude and fuel inventories, while the ever-present pandemic clouded the demand outlook. The Wall Street Journal reported yesterday that troubled California Resources (OTC:CRC) could file for bankruptcy as soon as next week. However, the company does believe it can refinance some of that because investors seem more willing to continue providing capital. 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