In the news

Oil-Price Crash Raises Risk for Banks, Commodity Traders; Some oil-producing nations repay loans with crude. That could become a problem for banks and trading houses

Published on15 Mar 2020

“Prepayment deals usually include a buffer to ensure there is some headroom for the producer to still meet obligations if the price of the commodity drops. If a price move in oil erases any buffer, borrowers can deliver additional volumes or repay in cash instead of in oil,” said Trafigura Chief Financial Officer Christophe Salmon. "In the worst case where the producer has no cash, no ability to add volumes, you extend the duration of the prepayments."


This article was originally published by on the 15 March 2020.


Read the full article:

By following this link, you exit Trafigura website to access a different website. Trafigura declines all responsibility for the content displayed on that site.