Still Reeling From Oil Plunge, Texas Faces New Threat: Surge in Virus Cases

Still Reeling From Oil Plunge, Texas Faces New Threat: Surge in Virus Cases

Still Reeling From Oil Plunge, Texas Faces New Threat: Surge in Virus Cases Businesses were reopening in recent weeks and oil prices had climbed north of $40 a barrel before coronavirus infections accelerated in the state.

A recent rally in oil prices had given energy executives in Texas hope that a recovery was at hand. Now they are not so sure.Credit...Tamir Kalifa for The New York TimesJune 25, 2020, 5:38 p.m. ET

HOUSTON “” Things were looking up for Texas in recent weeks. Oil prices had managed an impressive rebound, more than doubling to just above $40 a barrel. Restaurants and small businesses were opening up in Houston, Dallas and elsewhere. And tens of thousands of people were getting back to work.

But a recent surge in coronavirus cases in the state is messing up that neat recovery story. Small businesses that had just reopened are closing again and oil prices have slid below $40 a barrel after weeks of gains. Energy executives say they remain optimistic, but some analysts are worried about the Texas economy, which would be the world's 10th biggest if the state were a country.

Since businesses began reopening in early May, after a four-week statewide stay-at-home order by Gov.