Oil companies take steady, careful approach to ‘09

SAN FRANCISCO (Reuters) – Energy companies put on a brave face in response to rapidly deteriorating pricing on Wednesday, keeping 2009 spending plans largely steady, even as crude oil prices tumbled to a 16-month low.

Executives plan to wait for cues from clients before altering capital budgets because, even if oil prices are half that of three months ago, a $70-a-barrel range still represents a historically healthy level for production.

They will be closely watching OPEC’s meeting on Friday, although a U.S. fuel inventory build-up indicated weak demand may matter more than any cartel supply cuts.

Reuters