Crude Collapse Exposes Big Oil’s Weak Points as Valuations Crash
- Global energy sector index loses $385 billion in two days
- Break-even prices seen elevated amid crude-market slump
Photographer: Derick E. Hingle/Bloomberg
This article is for subscribers only.
The feud between Saudi Arabia and Russia is exposing oil companies’ weak underbelly, just as they were starting to reap rewards from years of belt-tightening.
Producers have cut costs, sold assets and canceled projects to repair balance sheets following crude’s 2014-17 slump. Now a renewed price plunge and a darkening outlook in the face of an all-out price war is threatening to sweep aside much of that work.