The American shale industry is struck by the oil price accident, which has dropped since the price announcement of President Donald Trump last week.
Despite the strong rescue rescue on Wednesday, after the 90 -day break of President Trump of pricing increases on most countries, with the exception of China, the price of American reference oil is now lower than the obviousness of the shale industry to unravel a new well.
The prices of the crude WTI fell from almost 1% to $ 61.76 per barrel in Asian trade on Thursday. This level is already lower than the average of $ 65 per barrel price that American producers must bring a new well profitably, as they indicated in the Dallas Fed Energy Survey for the first quarter.
Even if the stock markets joined Wednesday after the price break, the additional increase in prices on China – at 125% early Thursday – continues to frighten the oil market while concerns about Chinese and American economies are not part. The slowdown in savings or recessions would reach global oil demand, which maintains depressed oil prices.
Taken in the midst of fears and concerns of the recession concerning the excess offer with OPEC + opening the taps even more in May, the American shale industry fears that the times to come can be similar to the accident linked to the trash in oil prices.
Analysts and investment banks have not only lowered their oil price forecasts, but they have also reduced their demand for demand for demand.
With lower biased risks and increased uncertainty about global growth in economic and oil demand, American shale producers can be safe from profitable drilling and forced to reduce activity, according to industry leaders.
“It reminds me exactly Covid,” said Kirk Edwards, president of the Latigo Petroleum, based in Odessa, Texas, Financial Times.
At the beginning of 2020, the American market and producers were struck by the demand for demand and the price war between Saudi Arabia and Russia.
“We are again faced with a double blow,” said Edwards to FT.
By tsvetana paraskova for ilprice.com
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