Let's Re-Cap -- Technically, It's A Depression -- April 16, 2020

Scrolling down twitter:

• COP to cut production by 225,000 bopd
• Saudi Arabia told OPEC it cuts its crude production by 51,000 bpd to 9.733 million bpd in March 
• remember, Saudi Arabia started this, quibbling over 400,000 bopd
• Saudi Arabia completely mis-read this
• note: Saudi flooded the world with oil in March but yet is says its production actually declined;  if accurate, confirms my earlier posts that Saudi simply emptied its oil in onshore storage and moved it to offshore storage
• they needed to empty onshore storage to make room for continued production; shutting down wells in their old, old fields could irreparably damage existing wells
• Saudi Arabia now paying customers to take their oil off their hands; again confirming they are in a panic about saving their wells, their oil fields
• no one else has yet explained why Saudi would flood the world with oil in March while decreasing production
• on-shore oil storage, cost: $0/bbl
• off-shore oil storage: upwards of $50,000/day for an ULCC
• OPEC has secured historic global support for cuts to remove around 15 million bpd from the market over the next few months; is that enough?
• EIA -- a nominee for the Geico Rock Award? -- forecasts US crude oil production to decline because of low prices
• Baker Hughes will cut 234 jobs in Oklahoma City; cuts will be permanent;
• EIA weekly crude oil and refined products balances plunge
• OPEC: oil output rose by 821,000 bopd month-on-month in March to average 28.61 million bopd
• OPEC sees non-OPEC supply contracting by 15 million bopd in 2020
• OPEC sees demand for its crude dropping to lowest in 30 years
• COP to cut production by ~100,000 bpd to a gross 35,000 bopd; cutting production across US and Canada until market conditions improve -- they could be waiting a long, long time;
• total number now receiving unemployment benefits: 22 million
• definition of a depression: 20 million unemployed
• debate around the continued relevance of the Brent benchmark amid its growing inability to fully reflect regional price signals has been heightened by the sharp fall in oil prices -- Argus Media;

and, finally, I can't make this up:

The story not being reported: why did Saudi Arabia do this?

• empty their onshore storage, costing $0/bbl
• transferring that oil to offshore storage at upwards of $50,000/day for ULCC storage
• actually decreased production during the month of March when they said they were going to flood the market with oil
• the cuts that OPEC would agree to for the rest of 2020 would be based on March, 2020, production
• Saudi said it was about protecting their market share
• I think it's more about saving the integrity of their oil fields
• it looks like it's worth it to Saudi to pay China $10/bbl to take their oil
• old projections: Saudi would implode by 2025
• new projections: it may be a lot sooner than that
• House of Saud in deep doo-doo