Some already struggling energy companies may not be able to weather the drop in oil and gas demand
Many companies in America’s oil patch were already struggling when the coronavirus came around. Investors are worried some won’t pull through.
U.S. benchmark crude prices started the year strong, rising sharply in tandem with stock markets on trade-deal optimism and geopolitical jitters, but then lost over a fifth of their value and dipped below $50 a barrel for the first time in more than a year.
A brief slump on scary headlines wouldn’t put much of dent in producers’ bottom lines, but top exporter Saudi Arabia was spooked enough about a prolonged hit to call an emergency meeting of oil producers.