Clearing The Decks For Next Week -- April 1, 2022

CLR: Jack Stark entered into Consulting Agreement, steps down effective today as President. Source. I have no idea what this is all about, but the comments at the link might provide more detail. Or not. 

AMLO vs Biden:

• one demands faster action;
• the other does everything he can to slow things down;
• source.

Biden's Surge: I do believe "everyone" agrees that the Biden Surge will have unintended circumstances. Source. The Biden Surge is tracked here.

The executive order: the whole enchilada. 

SPR: one giant spread trade. We actually talked about this on the blog earlier. The link is to Reuters. And here, also. Most interesting: we talked about this earlier when we mentioned backwardation vs contango.

Fun fact: there's still Iranian crude oil in the SPR caverns. Source. If you look at the graphic at this post, it makes sense.

Russian oil production: already signs of a decline. Source. 

The myth of spare capacity:

• OPEC March, 2022, oil output rises a paltry 90,000 bopd month/month to 28.54 million bpd
• OPEC states' compliance with OPEC+ output cut pledges rises to 151% in March from 136% in February
• it's almost like OPEC is running out of spare oil apacity;
• OPEC+ spare capacity is insufficient;
• if anyone thinks OPEC is complying by 150+% out of the goodness of their hearts, I have a bridge to sell you.
• source.

Capitalization: source.

OPEC: to use Rystad, WoodMac data instead of IEA. Source. 

Expanding LNG and renewables: Sempra and Total. Source.