coronavirus Pandemic struck the American oil giant ConocoPhillips, forcing them to cut production. This is stated in the company statement.
the Largest independent manufacturer of raw materials in the United States voluntarily reduces production in North America (Canada and USA) more than a quarter, which corresponds to approximately 200 thousand barrels per day. In addition, ConocoPhillips collapses program of share repurchases and intends to continue to reduce operating expenses and expenses.
ConocoPhillips is the first major American company that voluntarily decided to reduce production amid falling oil prices. However, analysts are predicting that in the USA in may already there will be no place to store unclaimed oil and the production cuts will announce more businesses.
World oil prices collapsed in 2020 against the background of the pandemic coronavirus and a price war between Russia and Saudi Arabia, which began after the collapse of the deal, OPEC+. As a result, prices for oil in March fell to the lowest level in 18 years. In April, OPEC+ signed a new agreement on production cuts, but it was unable to support the prices of raw materials. In the course of trading on the London exchange ICE the April 17, 2020, the cost of the us WTI crude oil fell to 18.12 per barrel, the lowest since early 2002.
