Oil companies cut production, bracing for ‘lower for longer’ crude prices

Oil companies cut production, bracing for ‘lower for longer’ crude prices

With crude oil prices at their lowest levels in nearly 20 years, U.S. oil companies are taking the next step in protecting their balance sheets: production cuts.. The coronavirus pandemic is driving oil companies to seek more savings in the shape of production cuts which also raises questions about storage capabilities and other infrastructure constraints.. Major oil-producing countries are set to meet on Thursday, but there's fear that even agreed-upon supply curbs will not be enough given the plunge in demand and other pitfalls.. are among the latest to announce production cuts this week.. Continental also halted its dividend payment to enhance its liquidity position in a "lower for longer" oil price environment, Morgan Stanley analysts said in a note Wednesday.. Don't miss: Oil prices climb as U.S. output declines ahead of potential OPEC+ production cuts. The Morgan Stanley analysts chose "best positioned" energy stocks to face the shut-ins as those with "balance sheet strength, scale, and geographically diversified operations.. "In the face of unprecedented oil demand destruction, we expect oil prices will reach shut in economic levels for a large portion of US supply, and ultimately physical limits on storage will likely require producers to curtail production" in