Oil price war raises risk of defaults, shutdowns in industry

Firms with inadequate contract coverage and elevated gearing face most pressure: Analyst

The dramatic collapse of the Opec-Russia cartel that resulted in a record drop in oil prices may scuttle projects to explore and develop oilfields. PHOTO: REUTERS
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The price war between the world's two largest crude producers may result in bankruptcies, defaults and production shutdowns across the global oil industry.

Saudi Arabia and Russia are threatening to ramp up crude supply in a market where demand for fuels is being hollowed out by the coronavirus outbreak.

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A version of this article appeared in the print edition of The Straits Times on March 11, 2020, with the headline Oil price war raises risk of defaults, shutdowns in industry. Subscribe