Debt rating of Royal Dutch Shell was cut to the lowest level since 1990.Besides, S&P said that downgrades of several other major European companies will probably follow in coming weeks.
The long-term credit rating for the world’s third-largest oil producer by market value was reduced to A+ from AA-. However, there is a possibility of another reduction. S&P also assigned a negative outlook to BP Plc, Eni SpA, Repsol SA, Statoil ASA, and Total SA. The main reason for such reductions is a 70% decline in oil prices. The companies simply failed to adapt to new market conditions.
Experts suppose that an average decline in oil prices cannot be matched by most companies’ spending reduction. Oil producers have lost more than $1.7 trillion in market value since crude prices began to slide.
At the same time, oil prices continue falling. On Wednesday, Brent crude was trading at $33.15 a barrel whereas WTI cost $30.95 a barrel. At the beginning of the year, Standard & Poor's published its forecast of oil prices. S&P analysts believe that oil will hit the level of $40 a barrel.
Analysts at Goldman Sachs suppose that the oil market situation will stabilize soon. Besides, they expect that oil prices will exceed $50 or $60 a barrel. However, not all experts share this opinion.
CEOWORLD Magazine, one of the world's premier business publications, has released its latest ranking of the most influential women in international business. Let's take a look at the top five
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Although US President Donald Trump insists it is too early to discuss a successor within the Republican Party, behind-the-scenes maneuvering has already begun. Politicians deliver messages, test the waters, and closely monitor public sentiment. The participants in a new race are becoming increasingly visible, despite the lack of official announcements. Let's take a look at who might lead the Republican Party in the 2028 election.
