LONDON, March 10 (Reuters) - Chevron is looking at ways to reduce capital spending following the recent collapse in the oil price, which is expected to lead to lower near-term production, the company said.
“We are reviewing alternatives to reduce capital expenditures that are expected to lower short-term production and preserve long-term value,” Chevron told Reuters.
Crude futures fell by 20% on Monday, the largest one-day slide since the 1991 Gulf War, after the Organization of the Petroleum Exporting Countries and allies failed to agree on new output cuts and let production curbs lapse this month.
The benchmark Brent crude price were up 9% by 1115 GMT on Tuesday at around $37.50 a barrel. (Reporting by Jennifer Hiller in Houston, editing by Louise Heavens)