Stress testing highlights challenges for CIBC, Scotiabank
The gloomier forecast reflects several supply and demand factors
The rating agency’s base case forecast assumption for oil in 2016 is US$45
Three factors behind the turbulence in crude prices
Specifically, lower energy prices and more energy firms with low ratings and weak liquidity are taking their toll
Moody’s expects supply/demand equilibrium will eventually be reached at around US$75 a barrel for Brent crude, but not until the end of the decade
Craig Fehr, Canadian market strategist for Edward Jones, predicts oil prices will remain near current levels for some time. He gives tips on sector allocations going forward.
Prices aren’t likely to climb above US$80 a barrel in the foreseeable future
Rating agency says energy prices having minimal effect
Limited impact for U.S. banks