Perspective
19 February 2016
Reserve-based lending feels the squeeze from low oil prices
In:
Oil & gas
Region:
Americas, Europe
Low oil prices prompted BNP Paribas last week to “halt” any new US reserve-based lending (RBL) from its Houston office. Sources state other lenders will continue to offer RBL loans but warn that the current price of oil means banks are set to sharply “adjust” their existing loans to oil firms. Sources warn that RBL borrowers could see stricter terms being introduced to existing deals.
