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Almost as collateral damage, Iran is going to be badly hurt by the crash in oil prices. It's economy is very dependent on oil as a source of cash.
Iran attacked Saudi 's oil facilities back on Sept 2019. Payback time has arrived without a shot being fired.
Ok understand this problem a lot better now
Whatever
I'm wondering what kind of effect would corona breakout will worlds oil production and exporting? will there any impact on it?
Originally Posted by VeraP
Already a massive decline in demand from China because of the Coronavirus.
Whatever
What makes US oil companies very vulnerable to a long low priced oil war is that they have all invested heavily in their operations to keep the max amount of oil flowing.
In the next four years approx $86B worth of debt has to be repaid.
Cramer: '''9 or 10''' oil companies may go bankrupt amid crude declines
Up to a third of these producers could face bankruptcy should their revenues dramatically deline with lower prices.
The Corona Virus has the immediate of reducing people's willingness to travel thereby requiring less fuel consumption.
Global oil demand is expected to drop this year for the first time since 2009, according to the International Energy Agency.
Why Russia and Vladimir Putin are waging an oil war with America - CNN
Russia has grown impatient with OPEC and Saudi Arabia's attempts to keep the world's oil supply in check so as to maintain prices.
Russia's see the USA's rapid growth in oil exports and is determined to wrestle back market share from America's high cost oil frackers.
"This is a response to try to cripple the US shale industry," said Matt Smith, director of commodity research at energy research firm ClipperData.
Crude is now so cheap that many US shale companies will be forced to cut production.
The energy meltdown threatens to cause a repeat of the 2014-2016 oil crash that bankrupted dozens of American oil and gas companies and caused hundreds of thousands of layoffs. Although the industry survived, the experience proved to be very painful.
"Russia sees US shale as particularly vulnerable at the moment," said Ryan Fitzmaurice, energy strategist at Rabobank. "It is our view that Russia was targeting debt-laden US shale producers."
Beyond the market share battle, analysts said that Russia could be retaliating for Washington's recent campaign of energy sanctions -- penalties made possible by the shale oil revolution.
"Russia's strategy seems to be targeting not simply US shale companies -- but the coercive sanctions policy that American energy abundance has enabled,"
Igor Sechin, the CEO of Rosneft (Russia's state-owned oil company) and a close Putin confidante, appears to have convinced Moscow to take on the US shale industry.
"Like Putin, Sechin hails from the Russian intelligence services and is a strong nationalist," Croft wrote. "Undercutting American energy dominance therefore most likely appeals not only to his bottom line but also to his ideological affinities."
Putin is not known for backing down, suggesting the American oil industry should brace for more pain ahead.
Oil dropped 24% to a more than 18-year low on Wednesday as the coronavirus pandemic continues to sap demand for crude, and as rising worries about a global recession lead to fears of longer-term demand destruction.
Oil falls 24% in 3rd worst day on record, sinks to more than 18-year low
U.S. West Texas Intermediate crude fell 24.4%, or $6.58, to settle at $20.37 per barrel, its lowest level since Feb. 2002. At the low of the day, the contract hit $20.06. It was WTI’s third worst day on record.
At the end of the day oil closed at $23.71.
As a consumer this is great but for the economy and the industry this is a disaster.
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