The energy company Royal Dutch Shell cut its capital expenditures for 2020 by about 5 billion USD on Monday and halt the next tranche of stock buybacks as the company seeks to overcome the crisis in the oil markets caused by weak demand and the price war between Russia and Saudi Arabia.

The company said it would reduce cash capital expenditures by 2020 to 20 billion USD, or even below the planned level of about 25 billion USD, adding that the initiatives would contribute to the release of cash flow of 8 billion USD to -9 billion USD.

Royal Dutch Shell also said core operating costs will be reduced by between 3-4 billion USD annually over the next 12 months compared to 2019 levels.

“We will continue to review the dynamic business environment and are ready to make further strategic decisions and consider the changes needed in the overall financial framework”, the company said.

Shell joins the US-based Chevron, which says it is looking for ways to cut costs after oil prices fell by almost a third in a day after the price war broke out.