During these rare times, the global economy continues to sink. The pandemic coronavirus destroyed all the sectors. Even the crude oil market is trading at its 30-year low. Ultimately, Crude oil demand collapse results in a fall in crude oil prices. As a result, Crude oil is currently trading at 20$ per barrel.
There is no hope for the next couple of months for the increase of demand in crude oil and gas. Even though OPEC and OPEC+ nations agreed to reduce crude oil production. Countries are losing a considerable amount. Russia estimates to lose more than $100 million per day. The main reason for it is the price war between Saudi Arabia and Russia.
Due to crude oil demand collapse, both small and big companies are getting an impact. Just two weeks ago, Whiting Petroleum in North Dakota had to file for bankruptcy protection. It is one of the public listed companies. It has an annual revenue of more than $2 billion.
Analysts say, crude oil demand will continue to collapse and will decrease by 30 million barrels per day. Crude oil companies need to cut production. Another company, Chesapeake Energy, a public listed company with annual revenue of more than $10 billion. It was in the list of Fortune 500 for 14 years. Bankruptcy and losses seem its fortune now.
Currently, investors are closely monitoring this company as this is on the surge of going bankrupt. The company has a pile of debt in its balance sheet for more than $9 billion. They are planning to restructure the company. These days, nobody can estimate how long crude oil demand collapse is going to affect the global markets. All oil trading and producing companies are suffering. They pray and hope for recovery soon.