October came to a close with the Dow dropping 92 points to 17,663. For the week the Dow was up 0.1% but for the month of October it gained 8.47% for its best showing in over 4 years.
Oil giant Chevron reported an 87% drop in net income and gave a hint at how long oil prices might stay in the tank by cutting its capital budget for the next 3 years. The company also announced it would lay off 7,000 workers. Chevron said its oil production was off by 1% as the company finally appears to be closing the tap. Total revenue was down 37%. Analysts cheered the news and sent share prices higher.
Exxon also reported lower revenues and earnings but unlike Chevron they did not lower cap spending budgets. Revenue was lower by 37% and net income was lower by 47%. Both top and bottom lines came in better than expected. The one bright spot in the report was strong international refining margins.
Oil today was up another percent today finishing at $46.44 per barrel. It was the first positive week for WTI crude in the last 3 weeks. Baker Hughes reported that US drillers removed another 16 rigs from production bringing the total now down to 578.