US Considers Buying Oil, Air Tickets to Help Struggling Industries - Trump

WASHINGTON (Pakistan Point News / Sputnik - 25th April, 2020) President Donald Trump suggested on Friday that the US Federal government could start buying oil and airline tickets to support the two industries which have been hit especially hard by collapsing demand amid coronavirus lockdowns.

"We could buy oil at a great price into the future. That gives them the infusion they need and we have oil at a great price into the future. That's something I'd like you to think about," Trump told the Secretary of the Treasury Steven Mnuchin at a White House event.

He also floated an idea of purchasing flight tickets for US officials for the next four or five years at heavily discounted prices.

"We are the biggest user of the airline, the United States government. One of the ways we can help the airlines is buy tickets at very large discounts, maybe 50 percent offer, maybe more," Trump said.

"And you buy into four or five years worth of tickets, and you infuse them with some cash."

Mnuchin told reporters that there are multiple options under consideration to increase government support to the struggling industries, with taking stakes in energy companies among the moves being considered. "You can assume that's one of the alternatives," he said.

Oil producers, particularly in the United States, have been hard hit by plunging global demand and nosediving prices as the coronavirus pandemic has grounded airlines and halted other forms of travel with lockdowns keeping people inside.

Earlier this week, the price of futures for May delivery of West Texas Intermediate (WTI), the benchmark US crude index, fell into negative territory for the first time in history, reaching as low as minus 37.63 a barrel.