Friday, January 22, 2021

Tag: 40% of Oil Producers Will Go Bankrupt if $30 Persists

40% of Oil Producers Will Go Bankrupt if $30 Persists

by Mish Shedlock, The Maven:

Based on forward charts at least 40% of US oil producers are headed for bankruptcy.
Inquiring minds are diving into the Kansas City Fed Energy Survey by Chad Wilkerson, to get a better grip on problems facing oil producers. The results are grim.“District energy activity fell sharply during the first quarter of 2020, with our index dropping to its  lowest level since we began the survey in early 2014,” said Wilkerson. “Expectations for future activity also fell to their lowest level since late 2014, as most firms do not expect energy prices to return to profitable levels this year.”