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Data: Yahoo Finance; Chart: Axios Visuals

ExxonMobil, citing an "unprecedented environment," said last night that it plans to "significantly" cut spending in light of the coronavirus and the collapse in oil prices.

Why it matters: The oil giant's announcement is the latest sign of how deeply the upended market is affecting the sector.

"It was a stunning reversal for the largest U.S. oil producer, which two weeks ago pledged to 'lean in' to the market drop and maintain outlays in a belief oil demand would rise in the long run."
Via Reuters' Gary McWilliams

What's new: Goldman Sachs analysts now estimate that global oil consumption has fallen by 8 million barrels a day, and they see Brent crude falling to $20 a barrel next quarter, per Bloomberg.

Catch up fast: The oil market has been upended by two huge forces: the deep cuts in travel and the economic fallout from COVID-19 that's cratering oil demand, and the collapse of OPEC-Russia production-limiting deal.

Where it stands: Exxon is among many oil companies large and small announcing major cutbacks.

  • Just yesterday the large U.S. independent producer Pioneer Natural Resources said it's reducing its planned 2020 capital spending by 45%.
  • And a top BP official yesterday said the company could lower its spending by 20%.

What they're saying: In a joint statement, OPEC and the International Energy Agency said they reviewed the effects of the pandemic and price collapse on "vulnerable developing countries."

What they found: "[I]f current market conditions continue, their income from oil and gas will fall by 50% to 85% in 2020, reaching the lowest levels in more than two decades, according to recent IEA analysis." (Emphasis added)

  • "This is likely to have major social and economic consequences, notably for public sector spending in vital areas such as health care and education."

Go deeper: The hurdles facing Trump's planned strategic oil purchase

Go deeper

Updated 6 hours ago - World

Mexican President López Obrador tests positive for coronavirus

Mexico's President Andrés Manuel López Obrador during a press conference at National Palace in Mexico City, Mexico, on Wednesday. Photo: Ismael Rosas/Eyepix Group/Barcroft Media via Getty Images

Mexican President Andrés Manuel López Obrador announced Sunday evening that he's tested positive for COVID-19.

Driving the news: López Obrador tweeted that he has mild symptoms and is receiving medical treatment. "As always, I am optimistic," he added. "We will all move forward."

6 hours ago - Politics & Policy

Sarah Huckabee Sanders to run for governor of Arkansas

Sarah Huckabee Sanders at FOX News' studios in New York City in 2019. Photo: Steven Ferdman/Getty Images

Former White House press secretary Sarah Huckabee Sanders will announce Monday that she's running for governor of Arkansas.

The big picture: Sanders was touted as a contender after it was announced she was leaving the Trump administration in June 2019. Then-President Trump tweeted he hoped she would run for governor, adding "she would be fantastic." Sanders is "seen as leader in the polls" in the Republican state, notes the Washington Post's Josh Dawsey, who first reported the news.

Coronavirus has inflamed global inequality

Illustration: Aïda Amer/Axios

History will likely remember the pandemic as the "first time since records began that inequality rose in virtually every country on earth at the same time." That's the verdict from Oxfam's inequality report covering the year 2020 — a terrible year that hit the poorest, hardest across the planet.

Why it matters: The world's poorest were already in a race against time, facing down an existential risk in the form of global climate change. The coronavirus pandemic could set global poverty reduction back as much as a full decade, according to the World Bank.