Fed's Kaplan Expects 'a Number of Failures' in the Oil Industry

The video discusses the challenges faced by the oil industry, particularly in Texas, due to oversupply and low prices. It highlights the economic impact on the region, including job losses and reduced capital expenditure. The local market is struggling with storage issues, leading to even lower prices. Despite efforts like the OPEC deal, the market remains imbalanced. Recovery is expected to take several months, with a more balanced market anticipated next year.

What is the expected impact on job losses in the energy sector this year?

What factors contribute to the local prices of oil being lower than the quoted market prices?