US President Donald Trump has committed to provide financial support to the US oil industry after prices plummeted to the lowest level on record. According to news sources, the US President has instructed his administration to devise a funding plan to support local oil and gas companies. Earlier this week, U.S. crude oil futures prices turned negative for the first time in history, falling as low as -$37.63 per barrel due to oversupply and falling demand during the Covid-19 pandemic.
A new report by the Oil & Gas UK (OGUK) has noted that domestic supplies last year met around two-thirds of the country’s oil and gas demands. The report came at a time when OGUK has sought continued government assistance to support the local oil and gas industry from the impact of falling fuel prices and the need to ensure the health of workers.
UK-based offshore oil driller Valaris is planning to file bankruptcy. According to a Reuters report, the company is planning to start talking with creditors for a possible bankruptcy filing. Valaris, which is burdened with a $6.5bn debt, recently hired corporate restructuring experts.
The price of European oil contracts and stocks slipped following the unprecedented fall in US crude prices. All major European country indexes slipped after the plunge in prices. Analysts also said dividends from oil companies may be impacted as a result of the present crisis.