Oil Drillers Hunker Down for More Pain One Year Into Bear Market
- Shell CEO plans for long slump amid `mixed signs' of recovery
- Prices may drop a further $10 in coming months, Goldman says
The Bearish Fundamentals Behind Oil's Recent Rise
This article is for subscribers only.
A year after oil sank into a bear market, the industry is still hunkering down for a long period of low prices, with Europe’s biggest producer seeing only the first glimpses of a recovery.
In the past five months, U.S. production sank by 590,000 barrels a day, or more than 6 percent. The bad news: Drillers are cutting costs with a speed and brutality not seen in decades, enabling many oil producers to maintain output even as prices remain low. Goldman Sachs Group Inc. sees crude falling a further $10 a barrel as storage tanks fill up in the coming months.