We’re dealing with an unprecedented disease, unprecedented unemployment figures, and unprecedented levels of governmental stimulus. Some of them grew rapidly (usually, through aggressive acquisitions), but none ever grew large enough to dictate oil prices. Along the way, something occurred to oil prices which most economists thought would never happen – they dropped to zero and then even turned negative. And with oil prices down so much, the likelihood of many of these firms successfully reorganizing is slim. Even so, Treasury Secretary Mnuchin recently floated the idea of creating a government lending program for US oil companies which are drowning in a sea of cheap crude.

Source: Forbes May 06, 2020 14:15 UTC