Falling oil prices might cause a petroleum company to cut its dividend if it considered the decline long term or permanent.

Name: Falling oil prices might cause a petroleum company to cut its dividend if it considered the decline long term or permanent.
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Question

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Falling oil prices would likely result in a decrease in revenue for a petroleum company. If this decline is seen as long term or permanent, the company may choose to cut its dividend in order to conserve cash and prioritize other expenses.

Falling Oil Prices Might Cause a Petroleum Company to Cut