West Texas Intermediate (WTI) futures collapsed 45% today from the already collapsed price, to $10 a barrel, lowest since 1999.
The sudden declines in production illustrates the fatal flaw in the shale business model.
Economic powerhouse Texas first got hit by the Oil Bust then by the Coronavirus. Expect similar confluence of unrelated factors in other regions.
Shares of shale oil drillers collapsed by 25%-50% today. Their bonds got massacred. Saudi-Russia price-war strategy appears successful in wiping out investors in the US shale-oil sector.
Crude Oil Collapses 32%, US Stock Futures Plunge nearly 5%, 10-year Treasury Yield Gets Closer to 0%, Gold Jumps to $1,700, Asian Stocks Plunge, Nikkei -6%.
Now attention is switching to former President of Mexico Peña Nieto.
“Largest demand shock the oil market has suffered since the global financial crisis, and the most sudden since the Sept. 11 attacks.”
Texas at the epicenter. We’re witnessing the destruction of money that loosey-goosey monetary policies encouraged.
Where the heck are the EVs when you need them?
Shares have collapsed 75% since 2017.