It’s too late to stop now: American oil and gas companies have gone heavily into debt during the energy boom, The Wall Street Journal reports, increasing their borrowings by 55% since 2010, to almost $200 billion. Their need to service that debt helps explain why U.S. producers plan to continue pumping oil even as crude trades for less than $50 a barrel, down 55% since last June. But signs of strain are building in the oil patch, where revenue growth hasn’t kept pace with borrowing. Defaults are likely, some analysts say. Read the full story (subscription may be required).
From shore to shore: The U.S. trade deficit fell in November to the lowest level in 11 months as crude oil imports dropped to a two-decade low. The trade deficit narrowed to $39 billion in November, down 7.7% from a revised October deficit of $42.2 billion, the Commerce Department reports this morning. U.S. exports slipped 1% to $196.4 billion, with sales of commercial airliners falling. Imports dropped even faster, falling 2.2% to $235.4 billion. The Associated Press reports that was primarily a reflection of foreign oil declines. Read the full story.
By the numbers: U.S. businesses ramped up hiring last month in the latest sign that the nation’s economy is expanding despite worries about global growth that have sent financial markets tumbling. Payroll processor ADP reports that companies added 241,000 jobs in December, up from 227,000 in November. That suggests Friday’s official government report on December job gains will also be healthy. The ADP numbers cover only private businesses and sometimes diverge from the government’s more comprehensive report, which includes government agencies. Economists forecast the government’s figures will show that employers added 240,000 jobs in December, according to a survey by financial data provider FactSet. The unemployment rate is expected to remain at 5.8%. The Associated Press has the full story.
