Start News US Consider Loans for Troubled Oil Industry

US Consider Loans for Troubled Oil Industry

distel2610 / Pixabay

The U.S. government is considering lending the troubled oil industry out of the crisis. Treasury Secretary Steve Mnuchin said yesterday in Fox News that there would be no bailout program that would benefit shareholders. However, loans are in the shortlist, he is currently examining this option with the Ministry of Energy.

On Friday, Mnuchin told reporters that one of several options was government takeovers of oil companies. Now he made it clear that President Donald Trump had ruled out bailouts for both airlines and oil companies. „We will review corporate loans again in a strategic scenario, but no bailouts,“ he said, adding, „No bailouts for shareholders.“

The demand for the raw material has decreased significantly in the corona virus crisis because less oil is needed. At the same time, storage capacities in the United States have almost been used up. The most important producing countries recently agreed on a significant reduction in funding, but so far this has had no effect on prices.