WASHINGTON—The rapid spread of the novel coronavirus, coupled with the price war between Saudi Arabia and Russia, threatens the U.S. shale oil producers that are already struggling under large piles of debt.
The oil price has suffered from a sharp drop in demand in recent weeks as the CCP virus, commonly referred to as the novel coronavirus, pushes the global economy into recession. On top of this negative demand shock, a standoff between Saudi Arabia and Russia threatens to flood global markets with cheap oil if both sides fail to reach an agreement in the coming days.
