Crude oil prices retreated ahead of key weekly oil data as Exxon Mobil (XOM) announced plans to boost spending, fueling oversupply fears.
During its investors meeting Wednesday, Exxon Mobil said it would increase its capital spending budget by 24% to $32 billion a year. Cash flow from oil and gas production is seen rising over 6%. Exxon Mobil now sees 2025 profit up 140% vs. 2017 adjusted earnings, up from a prior goal of 135%.
On Tuesday, Exxon announced plans to produce 1 million barrels per day in the Permian Basin as early as 2024, an 80% jump from prior estimates.
Exxon said its plans were "attractive at a range of prices" and its assets could have a return of more than 10% if crude oil's price fell to $35 per barrel.
Chevron (CVX) also raised its Permian production targets Tuesday.
Meanwhile, the OECD lowered global economic growth forecasts again, which would weigh on crude oil demand.
Crude Oil Prices, Energy Stocks Fall
U.S. crude oil prices fell about 1% to $55.99 per barrel. Brent crude oil prices were down 0.2% to $65.69.
Exxon shares fell 1.1% to 79.41 in premarket trading on the stock market today. Chevron was off 0.5% to 122.70. Top U.S. independents Pioneer Natural Resources (PXD) and Concho Resources (CXO) weren't active early.
U.S. Oil Data Due
The Energy Information Administration will report weekly stockpile and production data at 10:30 a.m. ET.
Analysts polled by S&P Global Platts expect a 1.9 million barrel increase in oil stockpiles with gasoline supplies are seen falling by 2 million barrels.
The American Petroleum Institute said U.S. oil stockpiles rose by 7.3 million barrels while gasoline stockpiles fell by 391,000 barrels last week.
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The post Crude Oil Prices Fall On Oversupply Fears As Exxon Boosts Spending appeared first on Investor's Business Daily.
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