US Crude Oil Plummets Another 30%... Trump Pledges "Support for Oil Industry"

WTI May Futures Expire Negative Today, June Futures Also Plunge 40% Intraday
Trump: "Protect Oil Industry Jobs with Strategic Reserve Purchases and Financial Support"

Crude oil storage facility located in Cushing, Oklahoma, USA
[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Although a day has passed since international crude oil prices recorded an unprecedented negative (-) value, aftershocks continue. June West Texas Intermediate (WTI) futures plunged by 30%, and President Donald Trump announced plans to support the oil industry.

On the 21st (local time) at the New York Mercantile Exchange (NYMEX), June delivery WTI crude oil was trading at $14.30 per barrel, down 30% ($6.13) as of 11:40 a.m. The intraday low reached $11.79. The maximum decline rate exceeded 40%.

Brent crude, the international benchmark, also fell below the $20 mark, trading down 23% at $19.68 per barrel, but the drop was less severe compared to U.S. crude oil.

The turmoil in the oil market extended to the financial markets. MarketWatch reported that a leading U.S. oil exchange-traded fund (ETF) temporarily halted trading and then plunged more than 20%.

As the oil market situation continued to deteriorate, U.S. President Donald Trump, who had previously facilitated production cut agreements between Saudi Arabia and Russia, stepped in again.

With U.S. crude prices falling more sharply than the international benchmark Brent and unprecedented negative pricing occurring, he declared protection for the domestic industry.

President Trump tweeted, "We will never let down the great American oil and gas industry," adding, "I have instructed the Secretary of Energy and the Secretary of the Treasury to develop a plan to utilize funds to ensure these very important companies and jobs are guaranteed for a long time to come."

This confirmed his stance to support the shale industry facing bankruptcy through financial aid and expanding strategic petroleum reserve volumes. At the White House COVID-19 task force briefing the previous day, Trump said, "This is a great time to buy oil," and announced plans to purchase 75 million barrels of crude to fill the strategic petroleum reserve.

He also mentioned reviewing crude oil imports from Saudi Arabia and raised the possibility of halting those imports.

This content was produced with the assistance of AI translation services.