Plunging crude prices are propelling Occidental Petroleum to slash its quarterly dividend payout , and lower capital spending
The oil & gas major said it would cut its quarterly dividend payout by -86% to 11 cents a share, effective in July. It would also reduce 2020 capital spending to between $3.5 billion and $3.7 billion – compared to prior expectations between $5.2 billion and $5.4 billion.
After Saudi Arabia and Russia both announced that they would supply more oil into the market after failing to reach an agreement, oil prices have been largely in a free fall.
Although on Tuesday, there were some improvements with Brent crude rising 6.5% to $36.58 and U.S. benchmark West Texas Intermediate crude rising 6.9% to $33.28.