The Trump Administration will review solutions to the pain felt by US oil producers as oil prices fall to multi-year lows on Monday, according to Bloomberg.
Administration officials will present the President with options, which will include financial assistance to industries affected by the coronavirus and the oil price crash. These measures may include cash injections, tax credits, payroll tax cuts, and tariff reductions on specific Chinese imports, Bloomberg sources familiar with the matter said on Monday.
Oil prices fell sharply since on Monday after the OPEC+ talks fell apart on Friday and Saudi Arabia and Russia vowed to increase oil production in an oil price war that saw Saudi slash its OSP for April by between $6 and $8 per barrel.
By Monday afternoon, the WTI Crude grade had fallen 25.02% to $30.95—the largest oil price slide in years.
US oil companies were hit hard on Monday, with Chevron (-15.37%), Occidental (-52.01%), Apache (-53.86%), Marathon Oil (-46.81%), ExxonMobil (-12.22%), EOG Resources (-31.98%), ConocoPhillips (-24.87%), and Pioneer Natural Resource (-36.96%), all falling sharply on the day.
While US oil companies may be feeling the pinch, US consumers—mainly drivers—may be in for a real treat, with gasoline prices at the pump expected to fall. Average gasoline prices in the United States are already the lowest they’ve been in a year, according to Gas Buddy. Gasoline could dip below $2 per gallon in the coming weeks if the oil price war persists, Patrick DeHaan, head of petroleum analysis at Gas Buddy told USA Today.
And as gas prices go down, discretionary spending goes up—a positive development for the economy.
By Julianne Geiger for Oilprice.com
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Sorry, please tell Mr Trump Ass, this is NOT aid, it is a BAILOUT with the peoples money! That is what this deceitful grub is about to do, BAILOUT all the failing multi-national businesses, like Airlines, like Tech, Tourism, etc! This is actually, Socialism! And what Trump Ass and the Fed are doing is Socialism to the 1st Degree, shifting the wealth of middle-class to the 1%.
Republican, Democrate, they are just a two-headed snake, same stinking BS!
Can't have medical care to expensive.
But we can bail out private oil companies...
Furthermore, automotive workers, in fact most union and business workers don't want to give up their really good medical insurance for really crappy Medicare For All. One of the things socialists do when they get control of a country is to destroy democracy and the economy. Just look at Venezuela.
No country can stand very long if they spend more money than they make. Neither can a country thrive if it intentionally destroys jobs and the lives of thousands of families.