Rystad Energy recently noted to CNN that if oil continues where it is right now, more than 500 US oil production companies will have to file bankruptcy over the next 18 months. Rob De Lessio, independent fiduciary advisor with Strategic Wealth Designers joined CBS4 to discuss how big of an impact this could have on our economy.
“There are so many unknowns. When we do come out of this coronavirus situation and people are getting back to work, whenever that looks like it is going to be, there will be tons of corporations filing bankruptcy and the earnings reports are going to be dismal,” said De Lessio. “The impact is going to be huge, but there is no way to put your foot on it.”
With stay-at-home orders extending in some states and airlines pushing their refund travel dates back further and further, it is hard to imagine road or air travel will get back to normal anytime soon.
“As far as for the oil market, I think we are probably a good 12 to 18 months away before we really see an increase in usage. One of the things that can help us is that if the value of the dollar does get devalued, our exports will go up, which means that some of the transportation in the United States, while it may not be consumer driven, will be delivering things and things like that,” explained De Lessio. “That will help.”
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