American companies are starting to cut oil production

Soon the US will have nowhere to store oil and companies begin to cut production, analysts say.

Us oil company ConocoPhillips was the first in the country announced the reduction of oil production. This is stated in the company statement.

The company is the largest independent manufacturer of raw materials in the United States.

Because of the pandemic and the fall in oil prices, the company decided to reduce production in North America (Canada and USA) more than a quarter – about 200 thousand barrels per day.

In addition, ConocoPhillips collapses program of share repurchases and intends to continue to reduce operating costs and expenses.

Analysts predict that in the USA in may already there will be no place to store unclaimed oil and the production cuts will announce more businesses.

Meanwhile, the price of U.S. crude oil fell below $ 19 per barrel, the lowest level since January 2002.

According to media reports, the US government is considering how to pay American producers for the fact that they leave oil in the ground to help alleviate a glut that caused prices to fall and prompted some drillers into bankruptcy.

As you know, despite the OPEC deal+ on a record reduction of the oil price drop continued.


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