Coronavirus drives oil to a "rapid and brutal adjustment"

The consultancy IHS Markit now expects roughly 14 million barrels per day of crude oil production worldwide to be "cut or shut-in" during the second quarter.

The big picture: IHS analyst Jim Burkhard, in a statement, said a "rapid and brutal adjustment of global oil supply to a lower level of demand is underway."

• He said all producing nations are subject to the "same brutal market forces," but some will be more affected than others.
• IHS calls the cuts the largest in industry history.

Why it matters: The fresh estimate is the latest eye-popping tally of how the collapse in demand is affecting oil markets.

• A suite of U.S. companies are announcing major cutbacks. The latest came yesterday afternoon.
• The independent producer EOG Resources said shut-in of existing wells will cut production this month by 125,000 barrels per day.

Go deeper: Big oil group API opposes special handouts in coronavirus crisis