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California Resources Warns It May Collapse After Oil Crash

Oil Extends Recovery From Furious Selloff But Glut Angst Lingers
Photographer: Bing Guan/Bloomberg

California Resources Corp. warned it may not be able to stay in business if it can’t repair its balance sheet amid the worst crude-market crash in history.

California’s biggest oil producer will delay submitting its quarterly report to regulators until next month and ditched its guidance for the rest of this year because of the effects of the Covid-19 pandemic, the company said Monday in a filing. Tumbling demand for its crude forced the company to shut in the equivalent of 5,000 barrels a day of oil production.