U.S. shale oil company collapses for the first time Oil prices plunge April 5 at 5:56
A shale oil-related company in the United States, which had been doing well, went bankrupt on the 1st. Behind the U.S., the economy is rapidly deteriorating due to a sharp drop in oil prices due to a drop in demand due to the spread of the new coronavirus infection and the termination of coordinated production cuts by Saudi Arabia and Russia. It is likely to be a new concern for the economy.
The bankruptcy was "While Petroleum," a shale oil development and production company that filed a petition with the court on January 1 to apply Article 11 of the Federal Bankruptcy Law, which is the Japanese Civil Rehabilitation Law.
In addition to the drop in demand due to the spread of the new coronavirus, OPEC, the cutoff of production by the Organization of Petroleum Exporting Countries and Russia, has cut off the future price of crude oil in the New York market for the first time in 18 years, at 20 barrels per barrel. It has dropped sharply, such as breaking the dollar.
On the other hand, the US shale oil industry, mainly in southern Texas, is said to be the profitable line at around $ 50 per barrel, and this is the first time that the bankruptcy due to the sharp fall in oil prices has occurred.
These shale oil-related companies have raised funds by issuing low-yield bonds called high yield bonds, one of the corporate bonds, but interest rates soared due to the financial market turmoil caused by the spread of the new coronavirus infection And funding is becoming more difficult.