May 4, 2020—Big oil companies like ExxonMobil and Chevron are halting oil production as the two U.S. producers struggle through the coronavirus shutdowns, reports Reuters.
According to the report, the two U.S. producers are halting production for combined global shut-ins of 800,000 barrels per day in response to plunging crude prices and fuel demand.
According to a report from The Wall Street Journal, Exxon recently posted its first quarterly loss in three decades, adding up to $610 million in losses. The financial slump includes a $2.9 billion writedown to the value of its oil reserves after oil prices tumbled by more than 70 percent this year due to the sudden drop in demand for oil and transport fuels as major economies impose COVID-19 lockdowns, according to a report from The Guardian.
Chevron, the second largest oil company in the US, said it would rein in its annual spending plans by a further $2 billion this year to $14 billion, down sharply from its original $20 billion spending budget, in order to safeguard the company’s shareholder dividends, according to The Guardian.
Further, analysts expect the impact of the global oil market downturn on oil companies to be more severe in the second-quarter results.