'Saudi Oil Price Cut Is a Market Shock With Wide Tremors' diff viewer (15/16)

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Saudi Oil Price Cut Is a Market Shock With Wide Tremors	Saudi Oil Price Cut Is a Market Shock With Wide Tremors
2020-06-23 08:42:43 UTC	2020-06-23 21:56:52 UTC (about 13 hours later)
HOUSTON — The sudden upheaval in the oil markets may claim victims around the world, from energy companies and their workers to governments whose budgets are pegged to the price of crude.	HOUSTON — The sudden upheaval in the oil markets may claim victims around the world, from energy companies and their workers to governments whose budgets are pegged to the price of crude.
The fallout may take months to assess. But the impact on the American economy is bound to be considerable, especially in Texas and other states where oil drives much of the job market.	The fallout may take months to assess. But the impact on the American economy is bound to be considerable, especially in Texas and other states where oil drives much of the job market.
With the coronavirus outbreak slowing trade, transportation and other energy-intensive economic activities, demand is likely to remain weak. Even if Russia and Saudi Arabia resolve their differences — which led the Saudis to slash prices after Russia refused to join in production cuts — a global oil glut could keep prices low for years.	With the coronavirus outbreak slowing trade, transportation and other energy-intensive economic activities, demand is likely to remain weak. Even if Russia and Saudi Arabia resolve their differences — which led the Saudis to slash prices after Russia refused to join in production cuts — a global oil glut could keep prices low for years.
Many smaller American oil companies could face bankruptcy if the price pressure goes on for more than a few weeks, while larger ones will be challenged to protect their dividend payments. Thousands of oil workers are about to receive pink slips.	Many smaller American oil companies could face bankruptcy if the price pressure goes on for more than a few weeks, while larger ones will be challenged to protect their dividend payments. Thousands of oil workers are about to receive pink slips.
The battle will impose intense hardship on many other oil-producing countries as well, especially Venezuela, Iran and several African nations, with political implications that are difficult to predict.	The battle will impose intense hardship on many other oil-producing countries as well, especially Venezuela, Iran and several African nations, with political implications that are difficult to predict.
The only winners may be drivers paying less for gasoline — particularly those with older, less fuel-efficient cars, who tend to have lower incomes.	The only winners may be drivers paying less for gasoline — particularly those with older, less fuel-efficient cars, who tend to have lower incomes.
“What a day, what a time,” said Daniel Yergin, the energy historian and author of “The Prize: The Epic Quest for Oil, Money and Power.” “This is a clash of oil, geopolitics and the virus that together have sent the markets spiraling down. The decline in demand for oil will march across the globe as the virus advances.”	“What a day, what a time,” said Daniel Yergin, the energy historian and author of “The Prize: The Epic Quest for Oil, Money and Power.” “This is a clash of oil, geopolitics and the virus that together have sent the markets spiraling down. The decline in demand for oil will march across the globe as the virus advances.”
Saudi Arabia and Russia are hurt by low prices and have reasons to compromise, but both have a cushion to absorb financial losses for a few months at least.	Saudi Arabia and Russia are hurt by low prices and have reasons to compromise, but both have a cushion to absorb financial losses for a few months at least.
Saudi Arabia depends on high oil prices to fund its ample social programs, but it has the lowest production costs of any producer, so it can operate profitably even at lower prices. Russia has sufficient financial reserves and can devalue its currency, the ruble, to sustain the flow of money through its economy even when prices decline.	Saudi Arabia depends on high oil prices to fund its ample social programs, but it has the lowest production costs of any producer, so it can operate profitably even at lower prices. Russia has sufficient financial reserves and can devalue its currency, the ruble, to sustain the flow of money through its economy even when prices decline.
That leaves the higher-cost producers, and the service companies that drill for them, most immediately vulnerable. Diamondback Energy, a medium-size company based in Texas, slashed its 2020 production plans, cutting the number of hydraulic-fracturing crews to six from nine. Other companies are expected to follow suit in the coming days.	That leaves the higher-cost producers, and the service companies that drill for them, most immediately vulnerable. Diamondback Energy, a medium-size company based in Texas, slashed its 2020 production plans, cutting the number of hydraulic-fracturing crews to six from nine. Other companies are expected to follow suit in the coming days.
The operations in greatest jeopardy are small, private ones with large debts, impatient investors and less productive wells. Small companies — those with a couple of hundred wells or fewer — account for as much as 15 percent of American output, which has more than doubled over the last decade to roughly 13 million barrels a day.	The operations in greatest jeopardy are small, private ones with large debts, impatient investors and less productive wells. Small companies — those with a couple of hundred wells or fewer — account for as much as 15 percent of American output, which has more than doubled over the last decade to roughly 13 million barrels a day.
But medium-size companies are also imperiled, including Chesapeake Energy, according to Morgan Stanley. Chesapeake, a major Oklahoma oil and gas company, has $9 billion in debt and little cash because of persistently low commodity prices.	But medium-size companies are also imperiled, including Chesapeake Energy, according to Morgan Stanley. Chesapeake, a major Oklahoma oil and gas company, has $9 billion in debt and little cash because of persistently low commodity prices.
Chesapeake did not immediately respond to requests for comment.	Chesapeake did not immediately respond to requests for comment.
In an investment note on Monday, Goldman Sachs said that large companies like Chevron and ConocoPhillips would be prepared to handle the shock, but that Exxon Mobil could be forced to cut spending on exploration and new production, which has recently been focused on West Texas, New Mexico and the waters off Guyana.	In an investment note on Monday, Goldman Sachs said that large companies like Chevron and ConocoPhillips would be prepared to handle the shock, but that Exxon Mobil could be forced to cut spending on exploration and new production, which has recently been focused on West Texas, New Mexico and the waters off Guyana.
Shares of Occidental Petroleum, deeply in debt from its acquisition of Anadarko last year, declined by more than 50 percent over concern that it would need to slash its dividend.	Shares of Occidental Petroleum, deeply in debt from its acquisition of Anadarko last year, declined by more than 50 percent over concern that it would need to slash its dividend.
Halliburton and other service companies — the ones that do the drilling and hydraulic fracturing that blasts through shale rock — are exposed because explorers and producers frequently cut their services first during downturns.	Halliburton and other service companies — the ones that do the drilling and hydraulic fracturing that blasts through shale rock — are exposed because explorers and producers frequently cut their services first during downturns.
On the other hand, refiners like Valero may benefit from increased supplies of cheap oil, according to Goldman Sachs. And there may be an upside for natural gas producers, because a reduction in oil production will mean less gas bubbling up from oil wells, bolstering prices.	On the other hand, refiners like Valero may benefit from increased supplies of cheap oil, according to Goldman Sachs. And there may be an upside for natural gas producers, because a reduction in oil production will mean less gas bubbling up from oil wells, bolstering prices.
American oil executives put the best face on the situation, noting that many reduced their risks over the last six months by hedging with sales contracts at $50 a barrel or higher. But they said layoffs were inevitable, as when oil prices plunged in late 2014 and 2015 and more than 170,000 oil and oil-service workers lost their jobs.	American oil executives put the best face on the situation, noting that many reduced their risks over the last six months by hedging with sales contracts at $50 a barrel or higher. But they said layoffs were inevitable, as when oil prices plunged in late 2014 and 2015 and more than 170,000 oil and oil-service workers lost their jobs.
Companies can adjust their spending by drilling but not finishing their wells with hydraulic fracturing, leaving them ready to ramp up when prices recover. Still, oil analysts note that even a sharp decline in new wells would not reduce American oil production by more than a couple of million barrels a day over the next year or two.	Companies can adjust their spending by drilling but not finishing their wells with hydraulic fracturing, leaving them ready to ramp up when prices recover. Still, oil analysts note that even a sharp decline in new wells would not reduce American oil production by more than a couple of million barrels a day over the next year or two.
Scott D. Sheffield, chief executive of Pioneer Natural Resources, one of the biggest Texas oil companies, predicted that Russia and Saudi Arabia would be hurt far more than American oil producers.	Scott D. Sheffield, chief executive of Pioneer Natural Resources, one of the biggest Texas oil companies, predicted that Russia and Saudi Arabia would be hurt far more than American oil producers.
“We will all adjust our capital and employee work force to preserve balance sheets,” Mr. Sheffield said. “Many companies will go bankrupt, but new shareholders will own the drilling locations.”	“We will all adjust our capital and employee work force to preserve balance sheets,” Mr. Sheffield said. “Many companies will go bankrupt, but new shareholders will own the drilling locations.”
The oil industry has dealt with sharp price declines several times in recent decades. Big oil companies invested through those cycles, especially with long-term projects such as deepwater drilling in the Gulf of Mexico and off Brazil and Africa.	The oil industry has dealt with sharp price declines several times in recent decades. Big oil companies invested through those cycles, especially with long-term projects such as deepwater drilling in the Gulf of Mexico and off Brazil and Africa.
Some analysts say the global industry may not be as well prepared for the latest challenge. Increased concerns about climate change and the growing reluctance of investors to pour money into a sector that has strained to make profits in recent years hobbled the industry even before the virus hit.	Some analysts say the global industry may not be as well prepared for the latest challenge. Increased concerns about climate change and the growing reluctance of investors to pour money into a sector that has strained to make profits in recent years hobbled the industry even before the virus hit.
“In many respects, this time will be different, but not in a good way,” said David L. Goldwyn, the top energy diplomat in the State Department during the first Obama administration. “Low oil prices will not necessarily result in increased demand due to the firm commitment of many countries to decarbonization. The uncertain trend line for coronavirus suggests demand recovery will be slow in coming.”	“In many respects, this time will be different, but not in a good way,” said David L. Goldwyn, the top energy diplomat in the State Department during the first Obama administration. “Low oil prices will not necessarily result in increased demand due to the firm commitment of many countries to decarbonization. The uncertain trend line for coronavirus suggests demand recovery will be slow in coming.”
The stock market plunge that has accompanied the drop in oil prices will hurt many Americans, but at least they will be paying less at the gasoline pump. The average regular gasoline price has declined by 5 cents over the last week, to $2.38 a gallon, according to the AAA motor club, and is 9 cents below a year ago.
Updated June 22, 2020	Updated June 22, 2020
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.	A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.	The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.	The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.	So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.	A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.	The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.	If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.