ET - Report: As OPEC Extends Production Cuts U.S. Drillers Begin Reopening Wells
Uncertainty continues in the oil market as OPEC and its allies extended output cuts over the weekend, while U.S. shale companies have begun reopening existing wells as stay-at-home restrictions ease across the country. The Wall Street Journal reports that companies including Parsley Energy (NYSE: PE), Concho Resources (NYSE: CXO), and WPX Energy (NYSE: WPX) are already opening existing wells back up, while EOG Resources (NYSE: EOG) plans to increase production capacity beginning in the third-quarter.
The report said that OPEC members were informed prior to their meeting that U.S. drillers were planning to turn taps back on, but still agreed to extend the OPEC+ output cuts another month through July 2020.