Wolfe Research experts believe that as many as a third of American oil producers could go bankrupt by mid-2017. The positive scenario would be possible if oil rebounded to at least $50.
It is known that more than 30 small US companies that collectively owe in excess of $13 billion have already filed for bankruptcy protection. In addition, such oil companies as Sandridge Energy, Energy XXI and Halcon Resources paid more than 40% of third-quarter revenue toward interest payments on their loans.
On January 12, the price of a barrel of Brent crude fell to $ 31 per barrel. Experts believe that this situation is explained by the slowing of Chinese economic growth and oversupply in the market.
Earlier, analysts of Morgan Stanley, Goldman Sachs and Citigroup expect the price of oil to decline to $20, RBC reports.
