- Russian oil production fell by roughly 1 MMBbl/d in April but recovered by 200 MBbl/d to 300 MBbl/d in May, with more volumes projected for June (BBG)
- According to Russian Deputy Prime Minister Alexander Novak, Europe receives roughly 4 MMBbl/d of Russian oil
- He added that Russia is willing to redirect those supplies to Asia and other regions, leaving Europe with more expensive crude from other sources
- Meanwhile, China is looking to replenish its strategic petroleum reserves with low-cost Russian oil
- Permian oil average break-even price to rise by $10/Bbl to $40 - $45/Bbl after paying out dividends and fighting cost inflation, said Pioneer Natural Resources CEO Scott Sheffield
- Cost increases on drilling rig contracts, drill pipe, diesel, and frack sand is limiting U.S. shale production, he added
- Most public companies are planning to increase production by nearly 5% this year, in contrast to some oil majors that set targets of 15%-20% growth
- “I don’t think we’ll be able to continue to grow at 15% to 25% growth rates,” said Sheffield
- Yesterday, the EIA reported that the crude inventories fell by 3.4 MMBbls last week to 420.8 MMBbls
- The drop came despite a 5 MMBbls release from the SPR
- Gasoline stocks fell by 4.8 MMBbls, and distillate stocks rose by 1.2 MMBbls last week