Consulting firm IHS Markit expects oil demand in the second quarter of 2020 to be 22 million barrels per day less than a year ago.<\/p>\n\n\n\n
\n\tThis collapse in demand combined with low oil prices, storage \nconstraints and government ordered cuts are driving what is an \nextraordinary level of liquids production cuts and shut-ins around the \nworld.<\/p>\n\n\n\n
\n\t\u201cThe Great Shut-In, a rapid and brutal adjustment of global oil supply \nto a lower level of demand is underway. All producing countries are \nsubject to the same brutal market forces. Some will be impacted more \nthan others. But there is nowhere to hide,\u201d said Jim Burkhard, vice \npresident and head of oil markets at IHS Markit, World Oil reported.<\/p>\n\n\n\n
\n\tNorth America and OPEC members, as well as countries in the \nCommonwealth of Independent States\u2014particularly Russia\u2014are expected to \nbe the source of most of the production cuts.<\/p>\n\n\n\n
\n\tExactly where, why and how supply cuts will take place is a complex \nmatter. There is no fixed equation. Oil is produced in a wide variety of\n environments, which means there is no fixed equation and decision \nfactors vary. <\/p>\n\n\n\n
\n\t\u201cWhen it comes to the where, why and how of production cuts, the wide \nrange of technical, logistical, regulatory, contractual, and financial \nconditions means there is no single set of answers. But under these \nmarket conditions, it is pretty clear where production will be cut. \nNearly everywhere,\u201d said Paul Markwell, vice president, global upstream \noil and gas at IHS Markit.<\/p>\n","protected":false},"excerpt":{"rendered":"
Consulting firm IHS Markit expects oil demand in the second quarter of 2020 to be 22 million barrels per day less than a year ago. This collapse in demand combined with low oil prices, storage constraints and government ordered cuts are driving what is an extraordinary level of liquids production cuts and shut-ins around the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2,8],"tags":[639,178,56,300,213,68],"yoast_head":"\n