President Trump inched closer to supporting tariffs on oil imports on Saturday as one way to help the industry in historic turmoil over rock-bottom prices.
Why it matters: More than 70 oil companies could go bankrupt in the coming months, consultancy Rystad Energy said Friday, if U.S. oil prices are around $30 a barrel — which is above where they’ve been lately.
A pivotal Monday meeting among oil-producing countries to discuss supply curbs is reportedly being delayed amid tensions between Saudi Arabia and Russia, the leading players in the OPEC+ group.
Why it matters: Travel and economic freezes from COVID-19 are causing an unprecedented drop in oil demand that has caused prices to crater.
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.
