Exxon to Cut Activity in Permian Basin as Oil Prices Plummet
NEW YORK (AP) — Exxon Mobil plans to reduce the number of oil rigs operating in an oil-rich region in the Southwest and may cut planned capital expenditures as the spreading coronavirus saps energy demand.
The price of a barrel of oil has fallen more than 20% since the start of the year, and 8% in the last month, with energy demand expected to shrink as the outbreak drags on the global economy.
Oil prices were already under pressure due to signs of a slowing economy at home and abroad.
Energy demand dropped dramatically as flights to and from China and factories slowed production.