Schroders sees many oil firms going bust due to price collapse

To recap, the price of West Texas Intermediate (WTI), the grade of crude oil used as a benchmark, turned negative for the first time ever on Monday.

KUALA LUMPUR: Schroders expects the oil price collapse, aggravated by demand destruction due to the Covid-19 pandemic, to cause many oil companies in the US, Asia, Latin America and Europe, to go bankrupt.

Its head of commodities Mark Lacey said on Wednesday despite many oil companies cutting capital expenditure by up to 50%, many, many companies are going to go bankrupt.