Oklahoma regulators approve application classifying oil output as 'economic waste'

DENVER (Reuters) – Oklahoma’s energy regulator on Wednesday ruled in favor of an oil company’s application effectively bars property owners from cancelling leases where production is halted due to low prices.

The decision represents the first win by regional oil groups seeking relief from state regulators as prices fall to levels that are not profitable to pump. Globally crude supplies have overwhelmed demand that has fallen more than 30% due to the coronavirus pandemic and earlier this week, benchmark U.S. crude futures traded negative for the first time in history.

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