US President Donald Trump has assured to offer a financial lifeline to the United States oil industry after prices spin negative for the first time ever.
Donald Trump said he had briefed the treasury to establish a funding plan for beset oil producers, some plan was to force buyers to take their oil earlier this week as market prices dip to minus $40 a barrel.
United States President Donald Trump on Tuesday morning told rescue plans hours after the US oil price fell back below zero, following a advise overnight improvement from the historic fall into the negative price.
Donald Trump said on Twitter that we will never let the great US oil and gas industry down. Trump added I have briefed the secretary of energy & secretary of the treasury to make a plan which will make funds available so that all the Petro-chemical companies and jobs in the oil and gas industry will be secured long into the future.
The West Texas Intermediate (WTI), the standard for US crude prices, on Monday turned negative for the first time in market history, crashing $40 a barrel below zero, and fell back into negative territory.
Negative prices of US crude oil shows that producers are haunting to paying customers to take the oil off their hands. This all happens because the United States is running out of space to store a glut of crude due to the extraordinary situation created by the global COVID-19 lockdown, which has aroused a collapse in demand.
The US market collapse underlines the severity of the crisis facing oil and petroleum producers in the months ahead. The negative US crude oil prices were for oil to be shipped in May when demand for crude oil is estimated to fall to its lowest point.
But analysts have warned that United States crude oil prices may decline below zero again in the next months as the COVID-19 outbreak continues to take a levy on the oil and petroleum industry.