Bankers’ Fading Fear of Oil Lending Is Latest Boon for Shale

14 Apr 2017   Shale Oil

JPMorgan, Wells Fargo, Citigroup cut reserves amid oil rise Banks release $370 million loan provisions in first quarter Wall Street banks’ growing optimism about the energy industry is the latest boost for U.S. oil and natural gas producers already enjoying higher prices. JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. said on Thursday in their first-quarter earnings results that rising oil prices have helped them free a combined $370 million they previously set aside to cover bad loans. If the optimism turns into an increase in lending, it would be a boon to shale firms from Texas to North Dakota that rely on borrowed money to finance their drilling and fracking. That could further accelerate U.S. oil production, which is already expected to rise above 10 million barrels a day for the first time in late 2018, and put more pressure on OPEC’s efforts to restrain […]

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