The crude oil market is continuously going through bad phases. The oil and petroleum industry is one of the hardest-hit sectors due to coronavirus pandemic. The crude oil market contracted 10 percent yesterday. The world was expecting help for the crude oil market after the production cut deal.
Today, Crude Oil was trading at $19.45. At this bottom level, there is a substantial threat to the United States Oil industry.
Analysts suggest few steps which can help the crude oil market. These areas such:
In the absence of the steps mentioned above, crude oil prices can end, reaching up to $16 per barrel. The bitter truth is if oil fails to reach back to $30 per barrel price. Then, the United States Oil industry and petroleum industries throughout the world will be in a very tough situation. They will be making huge losses daily. The rate of bankruptcies will increase rapidly.
The Saudis and Russians reduced their production. President Trump should build pressure on Texas Crude Oil Officials and ask them to reduce the oil supply.
Under the present situation, it is highly recommended to arrange another meeting for OPEC and OPEC+ nations. All the governments need to decide further production cut and reduce crude oil supply in the global market.
Well, presently, it is not the only tough time for United States Oil Industry. The global oil industry is going through different phases.