Oil companies scaling back
It comes on the heels of earlier reports that Exxon will cut its 2016 capex budget by 25% to $2.3 billion.
Bloomberg notes the capital spending cut plans in a corporate slideshow.
It's going to take a lot more than capital spending rollbacks to bring the oil market into balance but it's a start. Yesterday's ADP numbers showed a 9.9 million barrel weekly increase in US storage. Official data is due out later today.
My guess is that Exxon is building a cash hoard to take advantage of companies that go bust and they'll pay pennies on the dollar.
The big news in the oil market in Asia-Pacific session was that billionaire Cheseakpeake co-founder and current CEO of American Energy Partners Aubrey McClendon was indicted on bid rigging charges.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
