[MUST READ] Russia’s military failure ($WSJ)
IEA plan to restrain oil use by 2.7 million b/d
EU plan to replace Russian gas lacks realism
Oil market liquidity falls as volatility rises
Traders hit by rising margin calls ($BBG)
Russia’s oil exporters switch to private sales
IEA/EIA/OPEC divide on war impact ($BBG)
China holds epidemic policy meeting (trans.)*
U.S. shale smaller firms boost output ($WSJ)
Andurand’s path for oil to reach $200 ($BBG)
* The fact China’s top policymaking group held a meeting dedicated to coronavirus control and its impact on daily life and the economy, and chose to publicise it as the top item on all state-controlled websites, suggests the country’s leaders are deeply concerned about the extent and impact of the latest outbreaks.
BRENT’s six-month calendar spread has become highly volatile as traders try to assess whether or not sanctions will disrupt Russia’s exports and how much impact that will have on global oil supplies. In recent weeks, the spread in dollars per barrel has seen 5-10 standard deviation movements on multiple days, which is generating large P&L swings and margin calls:
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