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Oil
companies are reversing 2020 spending and production increases
by an average 20% as countries limit air travel, order
businesses to close and tell residents to stay home. In a
one-two punch to suppliers, crude prices are down nearly 60%
this year and demand for fuels is falling sharply.
The largest U.S. oil producer, which last month pledged
"significant" cuts to spending, set 2020 capital expenditure at
$23 billion and could go lower if required, it said in a
statement. Exxon previously expected to spend up to $33 billion
and had spent $26 billion last year.
The U.S. oil major's shares were up about 5% at $42.52 in
premarket trading.
Exxon's market value has fallen 42% this year as the oil-price
war between Saudi Arabia and Russia has taken a toll on the
energy sector. However, its stock has been a laggard for years,
dropping 54% over the last five years compared with an 18% gain
in the benchmark U.S. S&P 500 stock index.
(Reporting by Jennifer Hiller in Houston and Arathy S Nair in
Bangalore; Editing by Saumyadeb Chakrabarty and Bernadette Baum)
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