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Rock-bottom demand is rapidly becoming a sort of 'new normal' as producers have not reacted fast enough, given the amount of demand disruption that we've seen around the world according to Lipow Oil Associates LLC President Andrew Lipow.Trump's aid proposal:
Market analyst David Madden said that OPEC was too slow and didn't cut deep enough to offset the fall in demand. "Oil storage facilities, not just in the US, but elsewhere around the world, will fill up over the next six weeks and when that happens, producers will simply be forced to shut production."
American shale oil companies are running in the red. The US government has already signed a historic $2.2 trillion stimulus package, while the Federal Reserve has cut its rates to zero and the government possibly paying these firms not to extract any more oil.
Plummeting oil futures dragged US markets down as stocks closed at a dip on Monday, with the Dow (down 550 points), S&P (declined 1.6 percent) and Nasdaq all finishing at a loss. Chevron and Exxon Mobil lost over 4 percent each - and the energy and utilities sectors both lost over 3 percent on the S&P 500, constituting its worst-performing industries. Over 22 million jobs have been lost with experts warning the resulting depression could be the worst in a lifetime.
Trump said "We're looking to put as many as 75 million barrels into the reserves themselves, that would top it out." Asked whether the US would halt oil shipments from Saudi Arabia as storage space dwindles, the president said only "We'll look at it ... we certainly have plenty of oil, so I'll take a look at that."
President Trump on Tuesday proposed establishing a relief fund for the oil and gas industry after oil prices plunged to below $40 a barrel as the coronavirus pandemic continues to wreak havoc on the world's economy.
"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!."
"We continue to stress at the highest levels that the S-400 transaction is the subject of ongoing CAATSA sanctions deliberations and it remains a major obstacle in the bilateral relationship and at NATO. We are confident that President Erdogan and his senior officials understand our position."The need to focus on slowing the spread the novel coronavirus pandemic has purportedly delayed, but not cancelled, implementing the new S-400 defence system, according to an unnamed senior Turkish official. "There is no going back on the decision to activate the S-400s (but) due to COVID-19 ... the plan for them to be ready in April will be delayed," the official said, cited by Reuters.
An airstrike, purportedly conducted by the Israeli Air Force in Syria near the city of Palmyra, has killed 9 Damascus' "fighters". According to the news agency, three of them were Syrians, while the remainder were "foreigners of unknown nationalities".
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