As crude oil prices fall, more US companies may face bankruptcy
Friday, January 15, 2016
A Wolfe Research report states that up to a third of U.S. oil companies could face bankruptcy by the middle of next year, The Wall Street Journal reports.
On Jan. 11, crude oil prices fell to $30 a barrel. Some investment banks predict that the price could fall even farther. The newspaper reports that some small companies have already filed for bankruptcy protection, owing more than $13 billion altogether.
The oil glut is expected to last into 2017. If able to do so, some producers with efficient wells continue to pump oil out of the ground, while others cut back on production.
Via: The Wall Street Journal > Oil Plunge Sparks Bankruptcy Concerns
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