Around 80 percent of the banks surveyed by the Fed indicated that their exposure to shaky oil companies accounted for less than 10 percent of their commercial lending. In that sense, a wave of defaults across the oil and gas country would appear unlikely to ripple through the financial industry. Still, over half of the banks who made loans to drillers expect their loan quality to deteriorate.
The oil crash may not cause the financial apocalypse after all - Business Insider
Instead, Mahesh said, minor price gains are encouraging a fresh flood in supply. "The higher the price goes now and the swifter it is going, we will see producers sort of curtail their ambitions to cut production."
Is the oil market recovery unsustainable?
As the oil industry tightens its belt after the worst price slump in a generation, the state-owned giants of the Middle East are taking the opposite tack. Saudi Arabian Oil Co., Abu Dhabi National Oil Co. and Kuwait Petroleum Corp. are using a record number of drilling rigs and boosting production, a contrast to international companies from Exxon Mobil Corp. to Royal Dutch Shell Plc, which are shelving projects and slashing costs.
There’s one part of the world where the oil industry is booming
Iran, OPEC’s fifth-biggest producer, sees $70-$75/bbl as a suitable price for crude, Oil Minister Bijan Namdar Zanganeh said, as markets show signs of a partial recovery from last year’s collapse. “Nobody is satisfied with current prices and instabilities and fluctuations,” Zanganeh said Wednesday at a news conference in Tehran. “I think everyone is very satisfied with $70 to $75,” he told reporters later. Brent crude, an international benchmark, was trading at $67.69/bbl Thursday at 7:46 a.m. in London.
Iran sees $75 oil amid plans for post-sanctions output boost