Bonds of US high yield oil companies dropped with the likes of Occidental (Oxy), Laredo Petroleum, SM Energy and Northern Oil falling ~3%. The move in bonds happened after the OPEC+ members agreed to boost production which saw Brent Crude fall below $70/bbl for the first time since last month, currently at $68.6/bbl. The OPEC+ reached a deal over the weekend to allow monthly production increases of 400,000 barrels a day from August after the UAE and Saudi Arabia ended their standoff. Analysts say this can ease the supply squeeze in the market and reduce inflationary risks driven by a spike in oil prices.
US Oil Companies’ Bonds Fall on OPEC+ Reaching a Deal
