Moody's Lower Oil Forecast to Accelerate Energy Firm Downgrades
- Company puts 69 U.S. energy companies on negative review
- Moody's cuts crude oil forecast to $33 a barrel for 2016
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Moody’s Investors Service revised its price forecast for oil this year and started reviewing ratings of oil companies, joining Standard & Poor’s in predicting lower crude prices as S&P began downgrading firms in the sector.
Moody’s cut 2016 price estimates for West Texas Intermediate and Brent crude to $33 a barrel and predicted the price for both kinds of oil will rise $5 a barrel on average in 2017 and 2018. After the change, Moody’s put 69 exploration and production companies in the U.S. under review for downgrade. S&P changed its forecast for the price of both oil types to $40 on Jan. 12.