Due to the Lockdown imposed in the US, the usage of automobiles has been limited. This affected the oil industry as the prices had slipped to even below zero dollars.
To face this situation, the President of the United States, Donald Trump, mentioned that the administration is planning to extend its complete support towards the oil companies which were affected by the record low oil prices.
Steps were taken by the administration to support the oil companies:
Donald Trump made it very clear that complete support of the government and administration would be given. The Secretary of Energy and Secretary of Treasury is currently devising a plan which will be able to grant funds to the worst-hit oil companies and to secure the jobs of the workers in those respective companies.
This plan is not yet confirmed as the Spokesmen for the White House, Treasury, and DOE has not, however, given any signs of confirmation.
The price of the US crude oil for May sunk deep on Monday for the first time. But, fortunately, the prices started showing a positive sign on Tuesday but were still priced at just $1.30 per barrel. The June futures expected to be more active as the price estimated at $15.37 per barrel.
A few oil companies have asked the President for direct financial aid as it deals on a global level, and the storage tank space for oil is also diminishing.
The White House has resisted this proposal, which led to a meeting where Russia and Saudi Arabia agreed to cut down the production of approximately millions of barrels.
