XOM - U.S. Oil Companies Begin Slashing Production as OPEC Decision Nears
Demand for oil has cratered because of the COVID-19 outbreak. That's causing crude to pile up in storage terminals around the world. Those facilities are quickly filling to the brim, which is causing concern that the industry will soon run out of space to store oil. That's leading pipeline companies and refineries in the U.S. to urge their oil-producing customers to reduce their output.
Continental Resources (NYSE: CLR) became the first one to heed that call as it pledged to slash its output by 30% in April and May. More U.S. drillers could voluntarily join it in the coming days as part of a semi-coordinated effort to ease the nation's glut of oil. Those supply reductions will make it easier for OPEC and its allies to end their price war and move forward with a coordinated effort to help stabilize the oil market.
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