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- Allowing oil and gas companies to tap credit facilities created by the CARES Act is “not the greatest use of money,” Elon Musk tweeted Wednesday.
- The Tesla CEO later said “much of the stimulus money is questionable, but this much to oil & gas seems especially so.”
- The comments arrive one day after the Trump administration hinted it would help the oil industry avoid outsized job loss and default amid recent commodity market chaos.
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Elon Musk isn’t convinced that saving the US oil industry is the best way to employ government stimulus amid the commodity market rout.
The Tesla CEO tweeted Wednesday against the idea, deeming the option “not the greatest use of money.” The comment arrives one day after the White House suggested it would work to lift ailing firms and avoid job losses. The Trump administration is looking to allow oil and gas companies to tap from the government’s $2 trillion coronavirus relief legislation.Â
“Frankly, much of the stimulus money is questionable, but this much to oil & gas seems especially so,” Musk said in response to a follower asking about the possible plans.
Oil producers fell further into a historic downturn this week after contracts for May delivery slid into negative prices. The coronavirus pandemic has long weighed on the sector, pushing demand to record lows as travel activity suddenly stopped.
An OPEC+ production cut made earlier in April alleviated some fears of a market slump before a storage deficit turned prices negative.
The world’s most-traded commodity staged a moderate recovery through Wednesday’s session. May West Texas Intermediate contracts expired on Tuesday, and June contracts traded roughly 21% higher to $13.96 per barrel at 2:50 p.m. ET Wednesday.Â
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