Citigroup latest major bank to end Arctic oil investment

Citigroup Inc. has become the latest majorbank to pledge that it will not invest in oil and gas projects in the Arctic.

The company revealed the policy in its environmental and social policy framework for 2020, The Anchorage Daily News reported Monday.

"Citi has not previously provided and will not provide project-related financing for oil and gas exploration and production in the Arctic Circle," the bank said.

BlackRock Inc., the world's largest asset manager, urgedcompanies in January to emphasize steps they are taking to combatglobal warming.

Citigroup joins Wells Fargo & Co., The Goldman Sachs Group Inc.,JPMorgan Chase & Co., and Swiss bank UBS in avoiding Arcticpetroleum investments.

News comes as oil industry damaged

Citigroup's announcement came as the oil industry is beingdamaged by rapidly falling oil prices and as Alaska companies reducespending to handle the revenue decline.

Some oil industry professionals in Alaska expressed concern thatreduced financial support for Arctic drilling could threaten futureprojects, particularly for small oil companies with limited assetsand options for generating cash.

Oil prices fell again Tuesday. The cost for a barrel of U.S. oilto be delivered in June plunged 43 per cent to $11.57.

The price drop is related to the decrease in people flying anddriving during shutdowns and the shuttering of factories amidwidespread stay-at-home orders to slow the spread of the novel coronavirus. Global oil demand is set to drop to levels last seen inthe mid-1990s.

For most people, the coronavirus causes mild or moderatesymptoms, such as fever and cough that clear up in two to threeweeks.

For some, especially older adults and people with existinghealth problems, it can cause more severe illness, includingpneumonia and death. The vast majority of people recover.