Banks will pull the plug on energy companies (GS)

The banks that energy companies depend on for loans are pulling back from the sector. Oil prices plummeted in late 2014, and they have remained low. Energy companies often borrow money using their reserves as collateral. With the value of those reserves falling as commodity prices slide, the companies will not be able to borrow as much in the future and may have to repay parts of some existing loans. Banks are now basing their lending decisions on an oil price of $48 a barrel, according to a sur...