US crude oil prices have fallen almost 30% in 2015 and almost 65% since the peak in June 2014. Crude oil is a big threat not only for top energy firms around the world but also for the financial market, as energy is an important sector in the broader market. The depressed energy market has erased just over $1 trillion of market capitalization from oil and gas companies around the globe. Around $2 trillion of bonds sold by oil and gas companies since 2010 have been hammered by the downturn in the energy market and are at risk of a credit rating downgrade. The possibility of default is rising. European government bonds worth more than $2 trillion have given returns of less than zero due to the turmoil in the oil market and oil-driven deflation.
Oil prices fell on Monday as an uptick in U.S. drilling and concerns about demand due to the slow progress in U.S.-Chinese trade talks overshadowed support from OPEC-led supply restraint.
“Oil prices are still trying to figure out what lead to follow. On the one hand, there is the OPEC+ cut story, now coupled with increasing issues around Venezuelan supply”, Vienna-based consultancy JBC Energy said.
more at source: https://www.reuters.com/article/us-global-oil/oil-prices-steady-opec-cuts-countered-by-slow-progress-in-trade-talks-idUSKCN1Q0013