Crude Collapse Has Investors Braced for ’80s-Like Oil Casualties - Bloomberg

Crude Collapse Has Investors Braced for ’80s-Like Oil Casualties - Bloomberg:



"When a glut of crude flooded the market in the 1980s, scores of energy companies disappeared through almost five years of depressed prices. Investors are worried history is repeating itself.



The supply overhang led to a 66 percent slide in prices over four months, starting in November 1985. Bankruptcies and mergers reduced the number of U.S. producers by 54 percent before a price rebound took hold in 1990.



While the rout of the past seven months hasn’t yet led to the carnage of three decades ago, there are ominous signs. North American producers are cutting spending, staff and dividends to stay afloat amid forecasts for U.S. crude below $40 a barrel. Investors are fleeing those most at risk. "



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