Shale producer Diamondback Energy Inc. on July 14 cut its 2020 production forecast due to higher-than-expected curtailed volumes in the second quarter and volatile oil prices.

Oil producers have been cutting their production forecasts as the COVID-19 pandemic crimps demand, resulting in excess supply.

Diamondback said it had suspended almost all completion activity and cut about 5% of production in the second quarter, adding that nearly all of the curtailed production was now back online.

The company, which operates in the Permian Basin, also said it brought back two completion crews to work in June and a third crew in July.

"These completion crews will enable us to honor our lease obligations and subsequently stem production declines, which we expect to do by the fourth quarter of 2020 after production bottoms in the third quarter," CEO Travis Stice said in a statement.

The company said it plans to produce 290,000 to 305,000 boe/d for 2020, lower than its previous forecast of 295,000 to 310,000 boe/d.

Diamondback now expects to spend between $1.8 billion and $1.9 billion for 2020, compared to its earlier outlook of between $1.5 billion and $1.9 billion.

Onshore