Tuesday, January 12, 2016 10:15:33 PM
U.S. oil stumbled below $30 for the first time in 12 years to levels that threaten the survival of many U.S. shale firms, spur more belt-tightening by oil majors and spell more pain for crude-producing nations and regions.
A seven-day losing streak fueled by concerns about a continued supply glut and fragile demand from China, the world's No. 2 consumer, wiped out almost a fifth of crude prices CLc1 this year and 70 percent since mid-2014.
Traders have all but given up attempting to predict where the new-year rout will end, with momentum-driven dealing and overwhelmingly bearish sentiment engulfing the market. Some analysts warned of $20 a barrel; Standard Chartered said fund selling may not relent until it reaches $10.
NO BOTTOM
The prospect of a protracted slump has fueled expectations of a flurry of asset sales deals that could be possibly financed by private equity or hedge fund investors and law firms and banks have been beefing up their restructuring teams.
The latest slide, however, quashed hopes that the market may have already found its bottom and private equity investors are expected to hold off with buying any assets with action expected to shift to bankruptcy courts.
The U.S. West Texas Intermediate crude (WTI) CLc1 benchmark briefly touched a low of $29.93, which was last seen in December 2003.
http://www.reuters.com/article/us-global-oil-fallout-idUSKCN0UR03220160113
A seven-day losing streak fueled by concerns about a continued supply glut and fragile demand from China, the world's No. 2 consumer, wiped out almost a fifth of crude prices CLc1 this year and 70 percent since mid-2014.
Traders have all but given up attempting to predict where the new-year rout will end, with momentum-driven dealing and overwhelmingly bearish sentiment engulfing the market. Some analysts warned of $20 a barrel; Standard Chartered said fund selling may not relent until it reaches $10.
NO BOTTOM
The prospect of a protracted slump has fueled expectations of a flurry of asset sales deals that could be possibly financed by private equity or hedge fund investors and law firms and banks have been beefing up their restructuring teams.
The latest slide, however, quashed hopes that the market may have already found its bottom and private equity investors are expected to hold off with buying any assets with action expected to shift to bankruptcy courts.
The U.S. West Texas Intermediate crude (WTI) CLc1 benchmark briefly touched a low of $29.93, which was last seen in December 2003.
http://www.reuters.com/article/us-global-oil-fallout-idUSKCN0UR03220160113
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