FX.co ★ US leading banks refuses loans to oil and gas sector

US oil companies that hardly survived after the conflict with Saudi Arabia, have recently faced new problems. The current trouble is extremely unexpected and even more serious than the previous ones.

The fact is that the US leading banks are refusing to lend money to oil and gas companies. Some experts suppose that financial institutions are actually boycotting this sector.

The opinion could be proved by the fact such large organizations as Citibank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo almost simultaneously ceased supporting the oil and gas industry, reducing the capital available for the US energy sector. Moreover, large investment organizations such as BlackRock have stopped putting in the companies that receive one-fourth of the income from coal production.

As a result, oil and gas companies are suffering great financial troubles. They have to delay the planned launch of drilling rigs and stop those that are working. Under such conditions, these companies will not be able to resume production rapidly if oil starts gaining in value. Thus, many companies cannot pay off or restructure their loans.