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.