President Trump indicated Friday he’s unlikely to take major steps to prop up oil prices and help an industry imploding as coronavirus chokes oil demand.
Why it matters: The pressure is now on for a planned Monday meeting of OPEC and other producing nations to strike a deal absent big action by the U.S. government. If that falls through, the industry could plunge even further into the abyss. Prices, now hovering below $30 a barrel, could breach $10, some experts say.
President Trump is calling on the Energy Department to find more places to store oil, in the wake of rock-bottom prices and an ensuing economic collapse of the sector itself.
Driving the news: Trump’s comments came Friday during the televised portion of a meeting he hosted with industry CEOs to discuss ways to help the sector. It’s reeling from a historic drop-off in demand with the world shutting down to slow the spread of the coronavirus.
The amount of gasoline American drivers are consuming dropped to levels not seen in more than 25 years, government data shows.
Driving the news: When most of us are staying home and not driving, this is one of the most predictable—but nonetheless still staggering—upshots of the unfolding coronavirus crisis.
A new Brunswick Group survey finds a largely supportive public view of the oil-and-gas sector but also backing for attaching strings — including environmental restrictions — to potential federal aid.
What they found: As the chart above shows, most adults surveyed believe the industry has a mostly or somewhat positive effect on the U.S. economy.
General Motors and Honda will jointly develop two electric vehicles for Honda's product line that are slated for manufacture at GM's North American plants.
Why it matters: No company can go it alone when it comes to funding advanced technologies like electrification.
Friday morning brought the news that the OPEC+ group will meet remotely Monday to discuss potentially steep production curbs, sending prices upwards on the prospect of easing the global glut as coronavirus crushes demand.
Why it matters: The meeting, reported by multiple outlets, is the second concrete sign in two days of new coordinated efforts since the OPEC+ supply management alliance — led by megaproducers Saudi Arabia and Russia — collapsed a month ago.
Treasury Secretary Steven Mnuchin said Thursday that oil companies are eligible for aid from new lending programs the Federal Reserve is setting up, but not direct loans from his department.
Why it matters: U.S. producers are facing financial distress from the price collapse that stems from COVID-19 causing an unprecedented drop in oil demand, and the Saudi-Russia price war.
Oil prices surged Thursday after President Trump tweeted that Saudi Arabia and Russia were preparing to jointly cut oil production, but then gave back much of the gain as neither country offered confirmation of his claims.
But, but, but: Saudi Arabia said in a statement it's calling for an "urgent meeting" of the OPEC+ and a group of other countries, including Russia.
The scuttling of November's pivotal UN climate conference is the starkest sign yet of how coronavirus is throwing a wrench into efforts to combat global warming. But like the wider relationship between the coronavirus and climate initiatives, the ramifications are ... complicated.
Driving the news: UN officials announced Wednesday that the annual summit to be held in Glasgow, Scotland, is postponed until some unknown time next year.
The IEA didn't mince words with the headline on Wednesday's explainer about the upended market: "The global oil industry is experiencing a shock like no other in its history."
Where it stands: It says the biggest force is the utter collapse in demand as the coronavirus outbreak freezes much transportation and economic activity, plus the supply shock from the end of the OPEC-Russia restraints.
Oil prices climbed Thursday morning as traders are responding to President Trump's comments yesterday evening that Russia and Saudi Arabia could soon mend fences on oil supply policy, per the Financial Times.
Driving the news: Trump told reporters that he believes, based on his recent calls with Russian President Vladimir Putin and the Saudi crown prince, that "they will work it out over the next few days."
