Oil and gas producers to cut spending after crude oil price crashes

Oil and gas producers to cut spending after crude oil price crashes

- Some producers of oil and gas have disclosed plans of reducing their investments following a downturn in prices of crude oil

- A push by Saudi Arabia and Russia to increase output has led to a fall in demand for crude oil by the oil and gas producers

- From the beginning of 2020 till date, international benchmark prices have fallen well below $30 a barrel

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Some oil and gas producers have revealed plans of cutting spending after crude oil prices experienced a downturn.

Oil markets have been negatively affected following a push by Saudi Arabia and Russia to increase output.

Myjoyonline reports that international benchmark prices have been reduced by more than half to well below $30 a barrel since 2020 started.

READ ALSO: Under $100 China phones are the most wanted handsets in Africa - Latest report

Producers of oil and gas have subsequently decided to reduce spending by about 30% on the average.

The companies that have taken steps in this regard are Chevron, DNO, Energean, ENI, Enquest, ExxonMobil and Genel

In other news, it has emerged that the bulk of debts accumulated by African countries are linked to commodities.

A month ago, the president of the World Bank, David Malpass, noted that some African countries continue to pile debts.

He added that there was an apparent lack of transparency in some loan deals reached with China.

Qz.com reports that Africa’s debts climbed by about 150% from $236 billion in 2008 to over $583 billion 10 years later, according to the World Bank.

READ ALSO: Monetary Policy Committee of Bank of Ghana reduces policy rate to 14.5%

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Source: Yen

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