Trump asks his cabinet to draw up a plan to help the oil sector
The fuel that moves the world is the victim of the fall in consumption due to measures to reduce mobility to combat the coronavirus on the planet, but production remains high in a market that before the crisis was oversupplied.
President Donald trump He asked his cabinet on Tuesday to draw up an emergency plan to help the oil industry and gas from United States harshly struck by the dizzying fall of the crude oil prices.
“We will never let our great American oil and gas sector fail,” promised the president in a tweet, in which he also announced that the departments of Energy and the Treasury (Treasury) have the mission “to make funds available so that these very important companies and the jobs (they provide) are guaranteed in the future.”
The fuel that moves the world is a victim of the drop in consumption due to mobility reduction measures to combat coronavirus on the planet, but production remains high at a market that before the crisis was oversupplied.
On Monday, a barrel of WTI traded in New York closed negatively for the first time in its history, at almost -38 dollars, which means that Those who have future contracts that expire this Tuesday at the close are willing to pay for others to keep the physical crude, in a market with almost saturated storage capacity.
The other WTI contracts and Brent oil, listed in London, have lost more than two-thirds of their value since the beginning of the year.
In this context of price collapse, bankruptcy haunts hundreds of US companies in the sector, both oil extraction and oil services.