Consumers exceeding bank credit lines slows oil hedging

Many have large unrealised losses from trades in second half of 2014

oil field

Weaker oil consumers, such as airlines, shipping firms and bus companies have been unable to profit from the recent fall in oil prices because they are already exceeding their bank credit lines with mark-to-market losses on unexpired hedges taken out in the second half of 2014.

Since June last year, front-month Brent North Sea crude oil futures have fallen from $115.06 a barrel (/bbl) to below $50/bbl in January. Despite the recent rally, oil is still below the previous six-year low seen in Apri

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