Donald Trump Photograph:( AFP )
The oil prices had plunged to -$37.63 a barrel in New York trading recording the lowest ever in history
As US oil prices hit a historic low on Monday plunging to $0.01 per barrel, US President said his administration "will never let the great US oil and gas industry down".
We will never let the great U.S. Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!— Donald J. Trump (@realDonaldTrump) April 21, 2020
"I have instructed the secretary of energy and secretary of the treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!, the US president said in a tweet.
The oil prices had plunged to -$37.63 a barrel in New York trading recording the lowest ever in history. The crash came due to steep fall in demand due to the coronavirus pandemic with businesses closed across the world, flights stranded and several hundred countries on lockdown. The relations between OPEC and Russia further heightened the crisis as oil inventories rose.
Although, the oil blocks last week reached an agreement to to cut production by 10 million barrels per day after much wrangling but it was considered "too little, too late" as oil prices plunged to record lows due to fall in demand and rising inventories in the US.
The effect of the fall in demand could be seen in the oil stocks with the Dow Jones Industrial Average trading 1.8 per cent down.
Meanwhile, Saudi Arabia which is the dominat leader of OPEC said was closely monitoring oil markets.
"The kingdom continues to closely monitor the situation in the oil markets and is prepared to take any additional measures in cooperation with OPEC+ and other producers," the Saudi cabinet said.
Oil prices continued to slide on Tuesday with the international benchmark Brent crude dropping below $19 a barrel for the first time in two decades.