Coronavirus economic updates: Collapse of oil prices comes amid Russian efforts to harm US energy sector

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sankai/iStockBy CATHERINE THORBECKE, ABC News

(NEW YORK) — The coronavirus pandemic has quickly evolved from a health care crisis to a financial one, shuttering businesses, upending industries and sending financial markets reeling.

Here’s the latest news on how the COVID-19 crisis is affecting the economy:Collapse of US crude oil market comes amid Russian efforts to harm US energy sector, DHS report saysThe unprecedented collapse of the crude oil market in the U.S. is one of the key strategic objectives of the Russian government, according to a Department of Homeland Security Intelligence analysis reviewed by ABC News.”Russia is intentionally trying to reduce oil prices by maintaining artificially high production even as COVID-19 has reduced demand for oil,” DHS analysts wrote in the analysis that was distributed to administration officials on April 15. “According to the Energy Information Administration, crude oil demand fell from 24.5 million barrels per day in April 2019 to 19.2 million barrels per day in April 2020, a roughly 22 percent drop.”Despite an April 12 agreement by OPEC and its allies to cut global production by nearly 10%, “the current cuts are still out of sync with the current level of demand, which has fallen about 35% since before the COVID-19 crisis,” the report said.”Russia’s actions probably are driven by a desire to improve its position in the oil market at the expense of the United States, which has posed a significant challenge to Russia’s profitability and influence in the global oil market,” the analysts wrote.The initial refusal by Russia to participate in production cuts was “driven by Russia’s animosity towards the market position of the U.S. shale industry, as well as by U.S. sanctions on the Russian energy sector,” they wrote, citing Western media.The intelligence analysts concluded that Russia’s ongoing attempts to undermine the U.S. shale industry, if successful, “will harm U.S. production, energy independence, and jobs, both being involved in shale production and supporting industries.”Meanwhile, President Donald Trump tweeted Tuesday that he has asked the “Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available” for the U.S. oil and gas industry.West Texas Intermediate crude for May delivery saw some gains Tuesday after a historic sell-off Monday, rising to approximately $5 a barrel. On Monday, prices plummeted below zero for the first time in history.Facebook begins accepting applications for its Small Business Grants programFacebook, which previously announced it was offering $100 million in cash grants and ad credits to small businesses impacted by the COVID-19 pandemic, officially opened applications for the financing on Tuesday.Applications are available now for small businesses in New York City, Seattle and the San Francisco Bay Area. They will open up to “all other eligible U.S. cities” on April 22.To be eligible to apply, small businesses must have between two and 50 employees, have been in business for over a year, have experienced “challenges from COVID-19,” be a for-profit company and be in or near a location where Facebook operates.The announcement comes as the federal government’s small business loan program reportedly ran out of money late last week.

US financial markets extend lossesU.S. financial markets continued to fall Tuesday, adding to Monday’s steep losses that were dragged down by a historic crude oil sell-off.The Dow Jones Industrial Average shed more than 650 points, or 2.8%, early Tuesday. The S&P 500 was down approximately 3.3% and the Nasdaq tumbled 3.9%.Meanwhile, West Texas Intermediate crude for May delivery saw some gains Tuesday after a historic sell-off Monday, rising to approximately $5 a barrel. On Monday, prices plummeted below zero for the first time in history.

Walmart to require all employees to wear masksWalmart announced over the weekend that associates at its stores and Sam’s Clubs nationwide will be now required to wear masks. “We will begin requiring that associates wear masks or other face coverings at work. This includes our stores, clubs, distribution and fulfillment centers, as well as in our corporate offices. We’ll also be encouraging customers and members to wear face coverings when they shop with us,” John Furner, the CEO of Walmart, and Kath McLay, the CEO of Sam’s Club, wrote in a memo to staff. “We have evolved our policy on face coverings from optional to mandatory as public health guidance has shifted,” they added. “The CDC now recommends wearing face coverings in public settings, including grocery stores, to help curb the spread of the virus.” The announcement comes amid increasing calls for personal protective equipment for essential workers at grocery stores and more. Earlier this month, Walmart was hit with a wrongful death lawsuit after an employee died from COVID-19 complications. His family claimed the store did not do enough to protect employees from the novel coronavirus. Copyright © 2020, ABC Audio. All rights reserved.