Coronavirus drives oil to a "rapid and brutal adjustment"
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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.