Why OPEC+ will cut even without US participation

You don’t need $20 oil to kill shale

There’s a narrative emerging around OPEC+ and shale: The mainstream thinking is that Russia and Saudi Arabia want to drive crude prices lower to kill US frackers.
I don’t think it’s correct, or at least not wholly correct.
The reality is that shale didn’t make any money in 2019 at $55 oil. Even at that price, it was on its way to mass insolvencies, albeit at a slower pace. I’ve been writing about the bust in shale for more than a year.
All this talk that OPEC+ wont’ cut without the US is a bluff. Why? Because shale is still going bust at $30-$40 oil.


Americas largest underground coal miner is headed for bankruptcy

Murray Energy didn’t make interest payments due yesterday

Murray Energy didn't make interest payments due yesterday
Coal isn’t back.
Murray Energy was granted extensions to renegotiate debt deals but they appear to have come up empty. Bloomberg reports that the company failed to make an interest payment due yesterday.
The failure of this company highlights the limited power of even the President of the United States in battling against economic forces. Many coal companies have already filed for bankruptcy, although none as big as Murray. The company employs nearly 7000 people and the largest underground coal miner in the United States.
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