Wood Mackenzie, an oil industry research firm, has indicated that persistently low crude prices could force oil firms to cut back yet more; even after executives have shaved $126 billion from annual spending plans this year. A FuelFix report explains, “The magic oil price that can keep most firms out of the red, according to Wood Mackenzie, has fallen $20 this year to $72 a barrel. On Monday, U.S. crude was below $52 a barrel and international oil was under $59 a barrel.” Although mergers and deals have not become entirely widespread now, if oil stays this low for an extended time, buyers of associated assets might be able to start acquiring some of the $300 billion inventory of property on the market later this year. That stockpile of assets represents 340 potential deals.
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