I started another oil stock position in Repsol, the Spanish oil major. Half their production is in the USA and they refine and sell in Europe and Latin America. I also added this week two more Canadian oil majors, IMO and CNQ.
I dug up some supply numbers. The Ukraine war has caused Russian production to fall to an 18 year low, by roughly a million bbl /day. Meanwhile China’s covid lockdowns are reducing their imports by 1.2 million, almost a perfect cancellation. Russia production will keep declining, but China I imagine is going to join the rest of the world soon and end its lockdowns.
Buffet seems to agree. He now has 15% of OXY worth $9 billion and also keeps buying Chevron.
