WTI futures for May delivery fell on Monday at the close of the NYMEX exchange to -37.63 dollars per barrel.
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The collapse of West Texas Intermediate (WTI) futures for delivery in May, which turned negative for the first time in history this Monday, could bankrupt hundreds of US oil companies, reports energy research company Rystad Energy. .
This April 20, at the close of the NYMEX exchange, the future sales of the WTI for delivery in May fell to -37.63 dollars per barrel, which represents a drop in 305.97% in one day, after the operators started to get rid of the contracts that They expire on Tuesday. Futures for this crude for June delivery are still trading above $ 20 a barrel, but it is not a positive indicator, experts warn.
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“$ 30 is bad enough, but once you get to $ 20 or even $ 10, it’s a complete nightmare“said Artem Abramov, head of shale research at Rystad Energy, quoted by CNN.
If oil drops to $ 20 a barrel, 533 US oil exploration and production companies will file for bankruptcy in late 2021. And if it hits $ 10 a barrel, there would be more than 1,100 bankruptcies, as calculated by the company.
“With [el precio de] $ 10, almost all US oil exploration and production companies that have debt will have to [declararse en quiebra] or consider strategic opportunities, “Abramov said, adding that” no one would be surprised “if Chesapeake Energy (CHK) and Oasis Petroleum (OAS) were forced to consider bankruptcy.
Rystad’s $ 20 per barrel scenario predicts that more than $ 70 billion of oil company debt will reorganize in bankruptcy, followed by $ 177 billion in 2021.
The key will be how long oil prices will remain cheap, since a quick rebound could allow several oil companies avoid bankruptcy.
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