US oil companies cut budgets amid price rout

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NEW DELHI: Devon Energy, Apache Corp and Murphy Oil Corp on Thursday became the latest in a string of North American oil producers to slash their capital spending and drilling plans as crude prices tumble.
Oil producers have been scaling back spending since the last price crash in 2014, and the latest cuts come as the coronavirus outbreak crimps demand and a price war between top producers Saudi Arabia and Russia threatens to flood the oil markets, pushing US crude to about $30 a barrel.
Crude fell about 6% to $33.7 on Thursday following surprise travel curbs imposed by US President Donald Trump and after the UAE followed Saudi Arabia in promising to raise oil output to a record high in April.
US crude was trading down more than 6% at $30.9 a barrel, well below the low $40 that shale players need to cover their costs.

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