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.
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