The Trump Administration has announced plans to buy as much as $3 billion worth of oil from domestic producers who employ 5,000 people or less, reports Bloomberg. The Energy Department aims to purchase 77 million barrels in total over the duration of the stimulus plan.
According to Bloomberg, around 300 U.S. companies stand to benefit from the plan, such as companies like Chesapeake Energy Corp., Whiting Petroleum Corp., and California Resources Corp.
The plan is an effort to aid American shale drillers which are struggling due to the continuing oil price war, and market panic induced by the spread of COVID-19. U.S benchmark crude has plunged around 60% in 2020 in response to the price war waging between Saudi Arabia and Russia, reports Bloomberg.
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