Oil giants brace for prolonged slump in crude prices

According to​ a report by webangah News ‌Agency, the Financial Times ⁢has cautioned that major global oil firms are bracing for ⁤an extended downturn ⁢in crude oil prices.

The‌ newspaper states ⁣these companies are working to ⁤reassure‌ investors thay’re prepared ⁢for​ worst-case scenarios. Executives from ExxonMobil, ⁢chevron, Shell, TotalEnergies,⁤ and BP emphasized ⁣during their quarterly earnings reports ⁤that their⁢ balance sheets remain strong, ⁢with⁣ no immediate ‍plans⁤ to cut⁣ expenditures or‍ shareholder returns.

Brent crude‍ plunges 16% in 3 months

Chevron—which previously announced significant workforce reductions—assured‍ investors it could‍ maintain $9 billion ‌in free ⁣cash‌ flow even ⁢with⁤ oil at​ $60 per barrel. Shell confirmed it would‌ sustain dividend payments⁣ even if prices fell to $40 per barrel,⁢ with​ no‌ revisions to capital expenditure‌ plans. ⁣CFO Sinead Gorman stated​ previously ⁤announced projects continue⁤ uninterrupted.

TotalEnergies CEO⁢ Patrick Pouyanné stressed the French company would respond without panic ⁣as‍ during the COVID crisis, noting it maintained dividends throughout the pandemic’s peak.

The report highlights April’s​ drop below $60/barrel for crude oil, with projections averaging around $65 through year-end—particularly as OPEC+ ​members including saudi Arabia and Russia⁤ continue increasing supply.