• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 12 hours Oil prices going Up? NO!
  • 3 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 14 mins Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 days Could Venezuela become a net oil importer?
  • 3 hours The Tony Seba report
  • 2 days Gazprom Exports to EU Hit Record
  • 1 day Oil prices going down
  • 1 day Could oil demand collapse rapidly? Yup, sure could.
  • 29 mins Kenya Eyes 200+ Oil Wells
  • 2 days Oil Buyers Club
  • 8 hours Saudi Arabia turns to solar
  • 19 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 13 hours Are Electric Vehicles Really Better For The Environment?
  • 1 day Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 days Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 2 days EU Leaders Set To Prolong Russia Sanctions Again
Alt Text

3 Possible Outcomes From The OPEC Meeting

With the OPEC meeting nearing,…

Alt Text

Can Oil Pull Greece Out Of Poverty?

Greece’s withering economy could use…

Alt Text

China Plans To Create A $78 Billion Natural Gas Giant

Chinese regulators are looking to…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

High Yield Market Faces Jitters From Low Oil Prices

Friday, December 18, 2015

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. Low oil prices sparking sell off in junk bonds

- Barclays high-yield corporate index is down 6 percent, but the energy portion is down 22 percent.
- Moody’s says about one-quarter of the junk defaults this year come from energy.
- A fund controlled by Third Avenue Capital Management, a junk bond mutual fund, will shut its doors after suffering steep losses. The move sparked a larger sell off in high-yield debt this week.
- Investment funds are having trouble finding willing buyers for their junk bond assets, which are rapidly losing value.
- Few are concerned that the defaults could lead to financial contagion, but the Fed’s rate increase added extra pressure on the high-yield market. Moody’s sees the default rate rising in 2016.

2. Different crude benchmarks fetch different prices

- Everyone watches the headline figures for WTI and Brent, but most oil companies sell oil at other benchmarks that are often discounted from the more popular benchmarks. This happens because of differences in quality, costs of transportation, and regional supply/demand circumstances.
- Mexico’s…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News