Exxon to cut activity in Permian Basin as oil prices plummet

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FILE – In this April 23, 2018, file photo, the logo for ExxonMobil appears above a trading post on the floor of the New York Stock Exchange. 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 crude prices sink. 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 spreading coronavirus drags on the global economy. (AP Photo/Richard Drew, File)

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 halted and factories slowed production.

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