Fra Zerohedge:
Houston, we have a serious problem… With only 20% of US Shale regions remaining economic at these oil price levels, it should not be surprising that the credit risk of the US
Energy sector is exploding to near 1000bps… and contagiously infecting
the broad HY market…
Credit risk in the energy sector is starting to infect the broad HY market – HYG at 2-year yield highs and HYCDX near 15-month wides…
Which signals considerable pain to come for US Energy stocks..
The denial is so loud it’s deafening
WTI Crude just burst below $58 and is now over 46% below the peak in June. Since the initial leaks of no production cuts at OPEC, WTI is down 25% (gold and silver are up 2-4%). At these levels only 4 of the US 18 Shale Oil regions remain economic…
61…60…59…58…57…
Down 25% from the initial OPEC leaks…
Which leaves only 20% of US Shale regions economic…
