Royal Dutch Shell plans to reduce spending by $5 billion in 2020, and suspended its plan to buy back $25 billion worth of shares, following the collapse in oil prices.

The company will reduce its capital expenditure to $20 billion, down from its planned $25 billion. It is also planning to cut its operating costs by $3 billion to $4 billion in the next 12 months.

Shell expects this to boost cash generation by $8 billion to $9 billion, pre-tax.

Oil prices have crashed as the coronavirus pandemic has slashed global demand and becacuse of the oil price war between Saudi Arabia and Russia.