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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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With prices falling ... half of the US shale oil companies face the specter of bankruptcy

rocky
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With prices falling ... half of the US shale oil companies face the specter of bankruptcy Empty With prices falling ... half of the US shale oil companies face the specter of bankruptcy

Post by rocky Wed 11 Mar 2020, 1:40 pm


With prices falling ... half of the US shale oil companies face the specter of bankruptcy

15:03 - 11/03/2020



With prices falling ... half of the US shale oil companies face the specter of bankruptcy %D8%A7%D9%84%D9%86%D9%81%D8%B7-2-696x435
Information / follow-up ..
Oil prices barely caught yesterday, Tuesday, until Wednesday, they returned again after recording the largest daily loss in 30 years, reaching 25% on Monday, due to the exacerbation of the crisis of the spread of the Corona virus and the agreement between the producers in "OPEC +" to extend the work of production cuts.
Oil markets continue to receive some pressure, with growing fears of weak global demand for crude oil, a widening recession, and an international recession.
Specialists and analysts expected that the sharp decline in crude oil prices would lead to the bankruptcy of more than half of the shale oil producers in the United States due to the difficulty of continuing in this price environment in light of the continuing high production costs, where the marginal cost of the shale is about 35 dollars a barrel, which means The difficulty of continuing production with the current data except for a few months, according to the newspaper "Al-Iqtisadiya".
The specialists stated that the risks of recession hit all the major centers of demand in the world, including the euro area, which is heading towards economic recession, according to the assurances of French Finance Minister Bruno Le Mayer, who called for a collective mobilization to defend the European economy, pointing to the existence of many other losses in the number of American oil rigs with The beginning of this difficult week.
In this context, Siefen Schimmel, director of the German company "VG Industry" said that raising "Aramco" for its oil supplies inside and outside the country to 12.3 million barrels per day in April comes as a natural step after the failure to extend the work of production cuts to the "OPEC +" and Russia's insistence to return To pump a wide supply.
He added that the crash of crude oil prices was a harsh surprise for all parties in the industry, especially with the intensification of the slowdown in demand due to the rapid spread of the Corona virus, which exacerbated the losses. United.
For his part, Robin Noble, director of "Consulting International" Auxera, explained that oil prices began the week with a record decline of 25%, which is the largest drop in prices in decades, reflecting the severity of the crisis in the markets, which requires speed from the major global economies in taking measures Motivational to lift the global economy, especially from the United States and China.
He added that the US administration is working hard to reduce the size of the crisis through stimulus measures implemented by the Federal Reserve and other mechanisms to reduce taxes and stimulate jobs, but the problem remains deep in Italy and it is one of the main economies in the world where many cities in northern Italy remain closed.
For his part, Andrei Gross, director of the Asia sector at the German energy company, MAMAC, said that the sudden Russian position that ended the agreement of production cuts in the "OPEC +" confusion over the market accounts and created a large glut in crude oil supplies in exchange for weak global demand due The Corona Virus spread, explaining that the breakdown of the talks had caused WTI price to drop to a record low.
He explained that the announcement of "OPEC" and Russia that all restrictions imposed on production will end at the end of this month created sharp downward pressure on prices and it is not known how far they will continue, which made some analysts expect the price of oil to reach $ 20 a barrel in the short term.
In turn, Golmira Raziva, chief analyst at the Strategic Energy Center in Azerbaijan, said that "OPEC" faced the global financial crisis in 2008 with impressive production cuts, but the current situation varies with a wide weakness in demand without production cuts starting next month.
She explained that until now, expectations indicate that the American oil industry may be the biggest affected, as it is currently locked in a historical crisis that may be much worse than the financial collapse in 2008 because the market is facing multiple pressures which is a mixture of the huge accumulated supply in conjunction with a large deflationary shock in demand. At the same time. 25 h has ended



    Current date/time is Thu 11 Aug 2022, 2:46 am