Airlines are hopeful that U.S. passenger traffic, which has dropped by 95% due to the coronavirus pandemic, will begin to recover by October but have warned that the slowdown in air travel could extend into next year and even longer. It's possible they will need another round of government bailouts to survive. Major carriers will receive 70% of the funds for payroll in cash assistance that will not need to be paid back, while smaller carriers receiving $100 million or less will not need to repay any funds....
Oil fell 4% towards $28 a barrel on Wednesday, pressured by reports of persistent oversupply and collapsing demand due to global coronavirus-related lockdowns and a lack of coordinated oil purchases for strategic storage. The International Energy Agency (IEA) on Wednesday forecast a 29 million barrel per day (bpd) dive in April oil demand to levels not seen in 25 years and said that no output cut could fully offset the near-term falls facing the market. "There is no feasible agreement that could cut supply by enough to offset such near-term demand losses," the IEA said in its monthly report....
Oil prices fell on Wednesday on persistent worries about oversupply amid global coronavirus-related lockdowns and as the International Monetary Fund (IMF) warned of a deep recession. Both benchmarks were stronger earlier in the session, as investors looked for bargains following the slumps on Tuesday, but the higher U.S. crude oil stocks fuelled concerns that a record global output cut by producers would not offset plunging fuel demand due to efforts to contain the coronavirus pandemic. U.S. crude inventories rose by 13.1 million barrels in the week ended on April 10, data from industry group the American Petroleum Institute showed on Tuesday, more than analyst expectations for a build of 11.7 million barrels....
Oil prices rose on Wednesday as investors looked for bargains after the previous session's slump and on hopes that consuming countries will look to fill their strategic reserves, although oversupply fears and warnings of a deep recession capped gains. U.S. West Texas Intermediate crude rose 36 cents, or 1.8%, at $20.47, having crashed 10.3% in the previous session. "Investors unwound short positions, after confirming a rise in U.S. crude oil stocks," said Kazuhiko Saito, chief analyst at Fujitomi....
Benchmark U.S. crude rose more than 3% in early trade on Wednesday, recovering from a 10% slump the previous session on hopes for purchases by consumer countries for their strategic stockpiles on a scale not before seen. U.S. West Texas Intermediate (WTI) crude futures were up 3.43%, or 69 cents, at $20.80 at 2225 GMT, after having crashed 10.3% on Tuesday on fears that a record global output cut by producers would not offset plunging fuel demand hit by the coronavirus pandemic. The Organization of the Petroleum Exporting Countries, along with Russia and other producing countries - a grouping known as OPEC+ - partnered with other oil-pumping powerhouses including the United States for an agreement set to remove a total of around 19.5 million barrels per day (bpd) from the market....
Average commercial vehicle speeds have increased and time spent at intersections for drivers has reduced, indicating reduced congestion following regional stay-at-home orders. ...
(Bloomberg) -- U.S. airlines reached preliminary deals with the Treasury Department to access billions of dollars in aid, securing a temporary lifeline as the industry waits for customers to start flying again.The agreements cover all major airlines, the Treasury said in a statement Tuesday, and position the government to start doling out $25 billion in assistance allocated for passenger carriers in the $2.2 trillion stimulus package signed into law March 27. American Airlines Group Inc. said it would get $5.8 billion in support, while Delta Air Lines Inc. said it would receive $5.4 billion.“This is an essential step, but just one of many that will get us through the next several months,” Delta Chief Executive Officer Ed Bastian said in a message to employees. “The funding, along with self-help measures we have taken, will prevent furloughs and pay rate reductions through the end of September, despite the 95% drop we’ve seen...
