LONDON, September 9. /TASS/. The world's largest oil and gas companies are cutting jobs, expenses, and investments at the fastest rate since the coronavirus pandemic, driven by forecasts of a prolonged slump in oil prices, the Financial Times (FT) newspaper said, citing analysts.

Fossil fuel prices have fallen by half from their peak after the conflict in Ukraine began in 2022, the paper said, adding that price pressure will increase following the recent decision by OPEC+ to continue increasing oil production. Wood Mackenzie consultancy predicts that the price of Brent crude will fall below $60 per barrel in early 2026, possibly remaining there for several years unless a geopolitical shock occurs. Brent is currently trading just above $66 per barrel.

At prices below $60 a barrel, none of the West’s oil majors will be able to meet their investment plans or pay the dividends expected by investors. Wood Mackenzie estimates that capital expenditures on global oil and gas production will fall by 4.3% this year to $341.9 bln, the first such annual decline in investment since 2020.

The US Energy Information Administration (EIA) said earlier that the slowdown in capital investment growth in the US will lead to a drop in production in the world's largest oil producing country for the first time since 2021.