Best MT5 broker in IndiaCommodity BrokerECN BrokerForex AnalysesForex Broker & Trading News

Oil majors slash 2020 spending by 20% after prices slump

Oil majors slash 2020 spending by 20% after prices slump

By Ritu,

Capital Sands

The world’s biggest oil and gas companies are cutting spending this year following a collapse in oil prices driven by a slump in demand because of the coronavirus crisis and a price war between top exporters Saudi Arabia and Russia.

Cuts already announced by eight major oil companies, including Saudi Aramco and Royal Dutch Shell , come to a combined $28 billion, or a drop of 20% from their initial spending plans of $142 billion.

BP cut its 2020 spending plan by 25% and will reduce output from its U.S. shale oil and gas business, it said on Wednesday.

Exxon Mobil Corp  said it would cut capital expenditure but has not given specific figures as yet.

Brazilian oil company Petrobras said it was dialling back short-term production, delaying a dividend payment and trimming its 2020 investment plan, among other measures aimed at reducing costs in the face of the coronavirus pandemic.

Oil prices have slumped 65% since January to around $25 a barrel.

Investors say if the current crisis is prolonged, the spending cuts announced by major oil companies may not be enough to let them maintain dividends without adding to their already elevated levels of debt.

The combined debt of Chevron , Total, BP, Exxon Mobil and Royal Dutch Shell stood at $231 billion at the end of in 2019, just shy of the $235 billion hit in 2016 when oil prices also tumbled below $30 a barrel.

Related posts
Forex Analyses

Dollar Slips From One-Month High Ahead of Fed Statement

By Administrator_ India Capital Sands The dollar edged marginally lower in early European trade…
Read more
Forex Analyses

Dollar Down Over Higher-Than-Expected Inflation Data

By Administrator_ India Capital Sands The dollar was down on Friday morning in Asia after the U.S.
Read more
Forex Analyses

Bitcoin under pressure as comeback fades

By Administrator_ India Capital Sands Bitcoin fell 3% on Friday, giving up gains from the Asia…
Read more
Newsletter
Become a Trendsetter
Sign up for Davenport’s Daily Digest and get the best of Davenport, tailored for you. [mc4wp_form id="729"]

Leave a Reply

Your email address will not be published. Required fields are marked *