Skip Navigation LinksMy Argus / News / News Story

US oil producers beat expectations

10 Jun 2016 18:57 (+01:00 GMT)
US oil producers beat expectations

Washington, 10 June (Argus) — US crude producers are in better shape than expected despite a period of sharply lower oil prices, US banks say. But banks are waiting for oil prices to stay higher for longer before increasing their borrowing bases, and oil companies are for now reluctant to boost output, Northern Trust chief economist Carl Tannenbaum says. US producers' liquidity was squeezed as prices dropped to $30/bl and banks started cutting borrowing limits, sharply boosting loan non-payment rates in the US banking industry, the Federal Deposit Insurance Corporation says. But defaults on loans among oil producers have been fewer than expected, US bank group BBVA chief US economist Nathaniel Karp says. The relatively short period of very low prices helped producers, as did drilling productivity gains, he says. Almost 80 North American oil and gas producers have filed for bankruptcy since early 2015.

2279382