Mnuchin of the United States is considering a loan program for struggling oil companies: Bloomberg News By Reuters

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© Reuters. Secretary of the Treasury Steven Mnuchin speaks during the daily briefing of the coronavirus task force at the White House in Washington

(Reuters) – Treasury Secretary Steven Mnuchin said he is considering a government loan program for US oil companies seeking federal help as they face devastating price cuts, said Bloomberg News reported on Thursday.

Oil prices have fallen as demand has declined due to blockages during the coronavirus pandemic.

“One of the things we’re looking at is providing a lending facility to the industry. We are looking at many different options and we haven’t come to any conclusions, “Mnuchin told Bloomberg News in an https: // bloom.bg/2xTUBFK interview.

Oil futures collapsed to trade in negative territory for the first time in history Monday, as desperate traders paid to get rid of barrels amid lack of storage space .

Energy Secretary Dan Brouillette told Reuters last week that he was working with Mnuchin to roughly double the maximum size of loans to mid-sized US energy companies as part of the recent stimulus package. CARES Act passed to reach $ 200 million to $ 250 million.

Falling oil prices have prompted shale companies to cut spending and halt drilling.

President Donald Trump said on Tuesday that he had asked his cabinet to come up with a plan to inject money into the US oil drilling industry.

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