- OPEC members are considering suspending Russia's participation in the coalition's quota system since sanctions prevent Moscow from increasing output (WSJ)
- Exempting Russia could mean an early end to the OPEC+ supply deal and see Saudi Arabia and other producers adding more barrels earlier than planned
- OPEC+ is set to meet on Thursday and is expected to approve a planned increase of 432 MBbl/d, part of a series of incremental monthly hikes aimed at bringing production back to pre-pandemic levels by the end of September
- Inflation in the shale patch is accelerating as ingredients crucial to oil production, such as steel, workers, and frack equipment, are becoming more difficult to come by (BBG)
- JPMorgan raised its shale patch cost inflation forecast for this year to 25%, up from 15% in December
- Higher costs led to a 7% increase in the oil break-even price to $56 per barrel for shale operators to earn desired profits