OREANDA-NEWS. The cost of the nearest futures for WTI crude oil fell by 12%, to $ 17.85 per barrel as of 15:34 Moscow time, according to trading data. This is the minimum level since January 18, 2002.

The reason for the collapse in prices for the West Texas brand was the news that the offshore drilling contractor Diamond Offshore Drilling decided not to pay semi-annual interest on its senior credit notes, which were due to expire in 2039.

The company's shares ended trading in New York by a fall of 39%. Following the company, the entire offshore drilling sector collapsed. If Diamond Offshore Drilling does not pay the debt before May 15, this will mean default, the news publication writes. Market participants fear that this will be the beginning of bankruptcies for the entire industry.

The fall in oil prices after OPEC+ in early March refused to renew the agreement to reduce production hit the US oil companies heavily. Now, oil is trading well below profitability levels for companies. As a result, drilling activity is rapidly declining in the country. On Wednesday, data from the Baker Hughes oilfield services company showed a 58% decrease in the number of active oil rigs to 504.