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Oil Market Showing Signs of Life as Producers Plan Output Cuts

  • Exxon, Chevron, Conoco plan to curb output from shale plays
  • Follow-through on supply-cut plans needed to sustain recovery
The Chevron Corp. El Segundo Refinery stands in El Segundo, California.
Photographer: Kyle Grillot/Bloomberg

Oil-output cuts across the U.S. have stemmed the freefall in prices. But whether the recent recovery is sustained will depend partly on whether producers make good on their commitments.

Exxon Mobil Corp., Chevron Corp. and ConocoPhillips expect to pump more than 500,000 barrels a day below planned levels by the end of the second quarter. Concho Resources Inc., one of the Permian Basin’s largest producers, plans on keeping its production intact this year although it had already begun cutbacks this month. North Dakota output has already fallen by more than 400,000 barrels a day, according to the state.