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
JPMorgan Chase As Bank of America, Wells Fargo and Citigroup Will Be Close Temporary Very Soon, Welcome to Fed Now CBDC
$40,000,000,000 in Unrealized Losses Hits JPMorgan Chase As Bank of America, Wells Fargo and Citigroup Face Exposure to US Treasuries: Report BanksterCrime: According to a…
Three Wall Street Mega Banks Hold $157.3 Trillion in Derivatives – That’s $56.7 Trillion More than the Entire World’s GDP Last Year
By StevieRay Hansen A consumer spending expert has released a dismal forecast for the US economy in 2024. Harry Dent told Fox Business on Tuesday…
David Webb Has an Incredible Bio, and Came From a Family Deeply Involved in Freemasonry. He Was a Successful Wall Street Manager for Years, and Now Lives in Switzerland Where He Owns Farmland. He Is Originally From Cleveland
According to Webb, everything is now in place for the Banks to steal our money in the “Great Reset.” Down Load The Free Book Here…
It Seems We Have Hit A Point Where A Wall Is In The Way Of “Kicking The Can” Much Further
BanksterCrime: by Tyler Durden By Peter Tchir of Academy Securities I’ve been doing a lot of thinking about “kicking the can.” Not because “kicking the…
The New York Fed Has Extended Its Half Trillion Dollar Bailout Facility to a Sprawling Japanese Bank You’ve Never Heard Of
BanksterCrime: By Pam Martens and Russ Martens: Kazuto Oku, CEO of Norinchukin Bank Quietly, on December 1, the New York Fed published the following statement on…
