“Great shut-in” hits North America—U.S. oil producers to halt 1.75 million barrels per day

IHS | Due to the collapse in oil prices,, IHS Markit expects U.S. producers are in the process of curtailing about 1.75 MMb/d of existing production by early June due to operating cash losses, lack of demand and storage capacity, and an unwillingness to sell resources at the very low prices available since the onset of the COVID crisis.


These reductions are not permanent. IHS Markit has projected a return of most curtailed volumes in the summer and fall of 2020 as tightening fundamentals lead operating margins back to positive territory. This resumption of production may accelerate if WTI remains above $30 per barrel—a price that allows operators to cover their operating costs and that reflects improved storage availability.


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