This Week’s Market Buzz

• At press time, WTI Crude prices were up 3.17% at $113.69 per barrel and the international benchmark, Brent Crude, rose by 2.41% to $116.65.per barrel.

• Source Energy Services Ltd. has elected to utilize the 30-day grace period under the indenture governing its 10.5% senior secured first lien notes due March 15, 2025. The company is utilizing the grace period to permit the continuation and conclusion of discussions with the syndicate of lenders under its senior secured credit facility to obtain a waiver from such lenders related to the payment of a cash interest payment in connection with the senior notes. The company does not expect to utilize the grace period in its entirety and anticipates concluding its discussions with the lenders imminently.

• According to, shortages of raw materials such as frac sand and, earlier this year, steel piping for wells, are one reason for production cost inflation, not just in the shale patch but everywhere where these raw materials are used in oil fields. A shortage of labor is a special problem for the U.S. shale patch, too, helping to drive production costs higher. Lingering supply chain problems from the pandemic are also in the mix.

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