# U.S. shale producers rush to cut spending, output as oil prices tank

> US crude futures fell 20% on Monday, the largest one-day slide since the 1991 Gulf War, after OPEC and allies failed to agree on new output cuts and let production curbs lapse. US shale producers moved quickly to cut spending and output.

- Date: 2020-03-09 · published 2020-03-09T12:00:00.000Z
- Category: geopolitics · region US · magnitude high
- Page: https://feedsoft.ai/events/4425-u-s-shale-producers-rush-to-cut-spending-output-as-oil-prices-tank
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Shale cutbacks may eventually tighten supply, but the immediate effect is lower crude prices that reduce energy costs and biofuel-linked demand for vegetable oils.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼
- NATGAS: neutral

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| NATGAS | 2020-03-10 | 1 | +9.3% | 3.0 | The oil price crash on 2020-03-09 led US shale producers to cut spending and output, which would reduce associated gas supply and plausibly supported the natural gas rebound the next day, though the direction is indirect and sentiment-driven so confidence is moderate. |
| NATGAS | 2020-03-19 | 5 | -13.8% | -3.0 | The 20% one-day crude slide after OPEC+ talks failed drove broad energy-sector selling and sentiment, and US shale output cuts would reduce associated gas supply, though the net effect on natural gas was mostly bearish via sentiment. |
| BRENT | 2020-03-09 | 1 | -22.5% | -10.0 | Confirms the lapse of OPEC+ curbs drove the record one-day fall in US crude, a contemporaneous reflection of the supply shock, though the shale response is a consequence rather than a cause. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-03-08 | [Saudi Arabia slashes April oil selling prices as OPEC+ fails to extend output curbs](https://feedsoft.ai/events/4424-saudi-arabia-slashes-april-oil-selling-prices-as-opec-fails-to-extend-output.md) | -23.0% | -31.2% |
| WTI | 2020-03-09 | [Oil plunges in Asia as producers start price war](https://feedsoft.ai/events/4422-oil-plunges-in-asia-as-producers-start-price-war.md) | -23.0% | -31.2% |
| WTI | 2025-08-05 | [Oil prices fall as OPEC+ output hikes counter Russia disruption concerns \| Reuters](https://feedsoft.ai/events/23233-oil-prices-fall-as-opec-output-hikes-counter-russia-disruption-concerns-reuters.md) | -3.4% | -1.7% |
| WTI | 2026-03-24 | [Oil prices drop 2% as Iran considers US proposal to end war \| Reuters](https://feedsoft.ai/events/8151-oil-prices-drop-2-as-iran-considers-us-proposal-to-end-war-reuters.md) | +17.0% | +4.7% |
| WTI | 2024-08-30 | [Oil Prices Drop as OPEC+ Considers Increasing Production in October \| OilPrice.com](https://feedsoft.ai/events/28974-oil-prices-drop-as-opec-considers-increasing-production-in-october-oilprice-com.md) | -10.8% | -10.5% |
| BRENT | 2020-03-08 | [Saudi Arabia slashes April oil selling prices as OPEC+ fails to extend output curbs](https://feedsoft.ai/events/4424-saudi-arabia-slashes-april-oil-selling-prices-as-opec-fails-to-extend-output.md) | -27.3% | -36.6% |
| BRENT | 2020-03-09 | [Oil plunges in Asia as producers start price war](https://feedsoft.ai/events/4422-oil-plunges-in-asia-as-producers-start-price-war.md) | -27.3% | -36.6% |
| BRENT | 2025-08-05 | [Oil prices fall as OPEC+ output hikes counter Russia disruption concerns \| Reuters](https://feedsoft.ai/events/23233-oil-prices-fall-as-opec-output-hikes-counter-russia-disruption-concerns-reuters.md) | -3.1% | -2.2% |

## Sources

- reuters.com: https://www.reuters.com/article/us-global-oil-shale/us-shale-producers-rush-to-cut-spending-output-as-oil-prices-tank-idUSKBN20W29J/

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.