Credit Benchmark have released the August Credit Consensus Indicators (CCIs). The CCI is an index of forward-looking credit opinions for US, UK and EU Oil & Gas based on the consensus views of over 20,000 credit analysts at 40+ of the world’s leading financial institutions.
Drawn from more than 950,000 contributed credit observations, the CCI tracks the total number of upgrades and downgrades made each month by credit analysts to chart the long-term trend in analyst sentiment for Oil & Gas. A monthly CCI score of 50 indicates neutral credit quality, with an equal number of upgrades and downgrades made over the course of a month. Scores above 50 indicate that credit quality is improving. Scores below 50 indicate that credit quality is deteriorating.
UK Oil & Gas firms recent run of improvements ends after 6 months. EU Oil & Gas firms have experienced some instability in their collective credit quality this year, however, their CCI score has been above 50 for 3 consecutive months now. US Oil & Gas firms have gone from strength to strength, boasting CCI scores above 50 for 17 consecutive months.
UK Oil & Gas: Trend of Net Improvement Ends
UK Oil & Gas firms recently had a run of improvements, with CCI scores above 50 for 6 consecutive months.
However, the UK Oil & Gas CCI score is 49.5 this month, bringing an end to the trend of net improvements.
Anxiety over global slowdown knocks sterling to a two-year low, as oil falls to its levels when the Ukraine war began.
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EU Oil & Gas: Trend of Net Improvement Forms
EU Oil & Gas firms have experienced some instability in their collective credit quality this year, with multiple reversals between improving and deteriorating credit quality.
However, the EU Oil & Gas CCI score has been above 50 for 3 consecutive months, suggesting a trend of improvement is forming.
Recently, it has been reported that Europe can withstand Russia’s energy threat of reducing gas supplies further.
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US Oil & Gas: Trend of Net Improvement Persists
US Oil & Gas firms have gone from strength to strength, boasting CCI scores above 50 for 17 consecutive months and maintaining long-term net positive credit quality.
Continuing a positive run, the US Oil & Gas CCI score sits at 56.8 this month, a small increase from last month’s CCI of 56.
The two largest energy companies in the US recently said that profits rose to record levels in the second quarter as they continued to reap the benefits of soaring oil and gas prices.
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