Exxon to Cut Activity in Permian Basin as Oil Prices Plummet

NEW YORK (AP) — Exxon Mobil plans to reduce the number of oil rigs operating in an oil-rich region in the Southwest and may cut planned capital expenditures as the spreading coronavirus saps energy demand.

The price of a barrel of oil has fallen more than 20% since the start of the year, and 8% in the last month, with energy demand expected to shrink as the outbreak drags on the global economy.

Oil prices were already under pressure due to signs of a slowing economy at home and abroad.

Energy demand dropped dramatically as flights to and from China and factories slowed production.