Featured Story
International banks are suspending credit lines for some independent oil refiners worried about the growing risk of defaults across industries because of the coronavirus epidemic, Reuters reports, citing industry sources…
According to the sources, at least three private refiners, or teapots, have had credit lines to the tune of $600 million suspended by banks including French Natixis, Dutch ING, and Singapore DBS Group Holdings.
“All our applications for new open-account credits are frozen … these clean credits are pivotal as we buy 6 to 8 million barrels of oil each month,” one source told Reuters.
Refiners, both private and state, have already reduced their run rates in response to the slump in fuel demand resulting from the outbreak, and now they have deepened these cuts, Bloomberg reported last week.
The average as of last Thursday was about 10 million bpd, down by 25 percent on the same time last year, when the average run rates were at a record high of close to 13 million bpd. Analysts expect the low run rates to continue at least until the end of this month, but if it spills into March, some refiners – notably independent refiners – will start experiencing a lack of storage space, too, after earlier this month they took advantage of low prices to stock up on crude.
Now, on top of that, the teapots that have accounted for a large portion of China’s increased thirst for oil that was instrumental in oil price recovery after the crisis, are having financing trouble.
“We were told by our banks that so long as the open-account credits are for oil heading to Shandong, it will be very hard chance winning approvals,” another Reuters source said.
The three refiners refused credit line extensions have combined oil import quotas of about 240,000 bpd, Reuters reports. If more banks become wary of defaults among refiners, this could hit imports over the longer-term.
StevieRay Hansen
Editor, Bankster Crime
MY MISSION IS NOT TO CONVINCE YOU, ONLY TO INFORM YOU…
https://bankstercrime.com/coronavirus-triggers-biggest-shock-to-oil-markets-since-lehman-crisis/
“Have I therefore become your enemy by telling you the truth?”
CoronaVirus, Oil Drop, Coronavirus, Fraud, Banks, Money, Corruption, Bankers
Don't Miss
United States Banking Crisis
Over the course of five days in March 2023, three small-to-mid size U.S. banks failed, triggering a sharp decline in global bank stock prices and…
US Banks Suffer Trillion-Dollar Deposit Loss In 2023, Small Bank Capitalization Remains Problematic
by Tyler Durden On a non-seasonally-adjusted basis (why adjust when we are looking at annual changes), US domestic banks saw a stunning $1.17TN in deposit…
Warning The Banks Are Not OK
Michael Wilkerson Author It has been nine months since the spectacular and sudden collapse of Silicon Valley Bank. After witnessing three of the four largest…
This Is Merely the Very Beginning. This Year, at Least 21 Spac-Listed Companies Declared Bankruptcy, Wiping Out a Total of $46 Billion in Equity. Coming: The Mother of All Crashes Coming
0 HNewsWire: A wave of bankruptcies and corporate defaults can be imminent as US corporations are being battered by rising loan rates. Experts caution that…
The DOJ Took More than Two Years to Answer a FOIA on Its Criminal Division Head; Three Days Before Christmas 2023 We Got a Troubling Disclosure
By Pam Martens and Russ Martens: Kenneth Polite On July 20, 2021 the U.S. Senate voted 56-44 to confirm Kenneth Polite (pronounced Po-leet) to head the most…
