"dtnpf" : Monthly Analysis: Energy Markets

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$30 Oil Could Spark Contagion In Energy Markets


$30 Oil Could Spark Contagion In Energy Markets
A new analysts from Deutsche Bank finds that the high-yield energy market could start to suffer from contagion if oil prices drop to the mid-$30s. At $35 per barrel, for example, the debt-to-enterprise value jumps to over 55 percent for a lot of high-yield energy companies. In early 2016, when oil prices dropped below $30 per barrel, it started to drag down stock indices around the world. For now, the recent gains in oil prices from the ten-month lows hit last week could ease concerns. "This time around it's supply driven, and low oil prices are only a problem for oil companies and one-trick-pony oil-producing countries," John Kilduff of Again Capital told CNBC.




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