That reversal of fortunes could prove fatal for overleveraged shale oil companies. Moody's Investors Service cut its near-term oil price assumptions this week, forecasting that US oil prices will now average just $30 per barrel in 2020, a price too low for virtually any US shale oil company to turn a profit. 'Skittish' lendersNo one wants to lend to a shale oil company that can't generate free cash flow at cheap prices. Analysts said oil companies with sturdy investment grade credit ratings will likely have access to these emergency funds. But it's not clear whether junk-rated shale oil companies will get access to the funds they need to survive because of their shaky financial conditions.

Source: CNN April 30, 2020 10:52 UTC