As wood Maccenzie reports today, “if the oil price continues to remain below $40 per barrel on average, oil companies will have to significantly reduce their budget, while noting that the industry will have to conduct a deep restructuring”. "...but they will have to pay attention to why you live and die at prices…», says the consultant of the company. Caspian Energy reports this news, citing Kaieteur News.

According to CNN Business, the shock of falling oil prices also shook stock markets, which were already panicking over a new coronavirus outbreak. The news agency noted that markets in Asia slumped during the Monday auctions, while the US stocks showed a significant decline.

In Europe, stocks fell 8.5%, while in Germany they fell by 7.4% and in Italy they fell by 7%.

It was also noted that the oil storage facilities are full. ExxonMobil (XOM) and Chevron (CVX) shares fell by over 9% per 1 unit, while bp (BP) shares fell by 20%. Companies engaged in exploration and production suffered even greater losses:

Pioneer Natural Resources (PXD) stocks fell by over 30%, while Occidental Petroleum (OXY) stocks fell by 40%. (see the link for getting a more detailed information:https://edition.cnn.com/2020/03/08/investing/oil-prices-crash-opec-russia-saudi-arabia/index.html).

American Goldman Sachs stated that due to the oil price war that is expanding in the world arena, oil prices which fell by 43 percent down to $20 per barrel represent a real opportunity for the market to be ready for this in the future.

S & P Global Platts, a leading independent provider of benchmark prices and analytics for the energy and commodity markets for more than 100 years, also noted that oil companies would be under significant pressure to trim their investment plans and reduce shareholder payouts this year in light of falling prices.