Oil Crashes To 18-Year Lows As Inventories Build

Crude oil prices fell further today, with WTI prices falling to 18-year lows, after the Energy Information Administration’s latest weekly inventory report that estimated a 2-million-barrel build for the week to March 13...According to Goldman Sachs’ Jeffrey Currie, this time the crisis could be worse than it was in 2014, when Saudi Arabia also upped production in an attempt to kill shale. “The biggest difference is that these producers are all in a much weaker position,” Currie told the FT. “Their balance sheets are weaker, their stock prices are lower.” If the current price trends continue through the end of the year, many shale producers will go under, analysts predict, and production will start declining, eventually contributing to a rebalancing of the market...MORE