Overnight Market Brief – 4 April 2022

Shaping the narrative, Biden SPR Release US announced a plan to release 1mbd for several months, totaling 180mb; a 1/3 drain of the US reserves and brings them to the lowest levels since 1984. There is also potential for other countries to release 30mb to 50mb. While that is the plan, there is plenty of skepticism on the ability to do that from an infrastructure perspective with the current SPR release around 600kbd so effectively doubling that. This drove crude lower nonetheless with front month -5.4 and led some downward revisions to Brent PTs across the street. OPEC+ Keeps Supply Increase.

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