Bloomberg reported the $60 billion of oil industry spending cuts this year won’t be enough as crude oil prices languish near a six-year low.
According to Jefferies Group, the world’s biggest producers will need to trim investments by a further $26 billion to meet sacrosanct dividend payments. Capital spending will have to fall 10% next year, Banco Santander said in Bloomberg‘s report.
Bloomberg said oil companies are bracing for “lower for longer” prices as a global supply glut persists, dragging crude to the lowest close since March 2009.
Read the full report from Bloomberg here.
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