By REUTERS
Ratings agency Moody’s on Friday placed large parts of the global oil and gas sector on review for a downgrade, as a crash of more than 70% in oil prices over the last 18 months has pulled down energy company stocks as well.
The reviews affect oil and gas companies across the world, including the US and Canada, Latin America, the Asia-Pacific region as well as Europe, Middle East and Africa.
“Moody’s Investors Service has placed the ratings of 120 oil and gas companies on review for downgrade,” the ratings agency said in a statement.
“These reviews reflect a mix of declining prices that are near multi-year lows, weakening demand and a prolonged period of oversupply that will continue to significantly stress the credit profiles of companies in the oil and gas sector,” it added.
In one of the steepest price falls in history, crude oil prices have lost more than 70% since mid-2014 to
around US$30 per barrel, pulling down share prices for energy firms, as producers around the world pump one million to two million barrels of oil every day in excess of demand in a war of discounts for market share.
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