This NYT long read on Putin’s war against Ukraine is truly flabbergasting.

Some of the more mind-blowing snippets to follow below.
nytimes.com/interactive/20…
“In interviews, members of the brigade said some of them had barely fired a gun before and described having almost no bullets anyway, let alone air cover or artillery.

But it didn’t frighten them too much, they said. They would never see combat, their commanders had promised.”
“Russian invasion plans, obtained by The NYT, show that the military expected to sprint hundreds of miles across Ukraine and triumph within days. Officers were told to pack their dress uniforms and medals in anticipation of military parades in the Ukrainian capital, Kyiv.”
“Putin associates said he spiraled into self-aggrandizement and anti-Western zeal, leading him to make the fateful decision to invade Ukraine in near total isolation, without consulting experts who saw the war as pure folly”

[I’m sure he found solace in a few accounts on here😒]
“The Russian military […] was severely compromised, gutted by years of theft […] One military contractor described frantically hanging enormous patriotic banners to hide the decrepit conditions at a major Russian tank base, hoping to fool a delegation of top brass.“
Parade of blunders:
- old maps, bad intel
- far less useful than expected hacker squads
- soldiers phoning home with cells, revealing positions
- “While their planes were being shot down, many Russian pilots flew as if they faced no danger, almost like they were at an air show.”
“Many of his fighters are commanded by people who are not even part of the military, like his former bodyguard, the leader of Chechnya and a mercenary boss who has provided catering for Kremlin events.”
Dear lord it’s too much:

“Putin’s fractured armies often function like rivals, competing for weapons and … viciously turning on one another … the clashes became violent, with a Russian tank commander deliberately charging at his supposed allies and blowing up their checkpoint”
Moscow blames the West & its weapons:

“This is a big burden for us,” Putin’s spokesman said, depicting Russia as taking on all of NATO’s military might in Ukraine. “It was just very hard to believe in such cynicism and in such bloodthirstiness on the part of the collective West”
“Russian soldiers [were] stunned when the orders came to invade. On Feb 23, [they] were at their camp celebrating the Defender of the Fatherland holiday … when their commander approached

“Tomorrow you are going to Ukraine to fuck up some shit”

There was no further explanation”
When you treat your soldiers like shit, don’t be surprised when they poke holes in your truck gas tanks or pour sand in your tank fuel tanks.
Solid entry in the book of give an inch and they’ll take a mile.

The experience in Crimea [understandably] emboldened Putin, demonstrating both weak Ukrainian resistance and anemic or at least short-lived Western sanctions consequences.
[weekend life intermission: reading break done, Jr Intern back awake; will continue this thread on Moscow’s bewildering military incompetence during Jr’s next nap ☝🏻]
Anddd we’re back for nap #2 quote roundup.
Solid system…

“Mr. Putin’s isolation deepened his radicalization … Those who got to see him in person saw their influence rise in a system in which access to Mr. Putin—referred to as “the boss” or “V.V.,” his first initials, by insiders—is the most valuable of currencies.”
*Everyone* overestimated Russian capabilities, a fact crystallized in what a US defence official called Gen. Milley’s (aka the chairman of the Joint Chiefs of Staff) “you’re going to die” speech
Few of Putin’s supposed closest advisors knew about the invasion plans before they were announced.

“The best that senior aides could do was to try to read Mr. Putin’s body language. Some reported with concern that “he’s got this warlike twinkle in his eyes””
“Unlike its more limited campaigns in places like Syria — or the big hypothetical war with NATO it had long planned for — the invasion of Ukraine was simply “not what the Russian military was designed to do,” putting it in a position it was probably “least prepared” to deal with”
““The collective system of circular, mutual self-deception is the herpes of the Russian Army,” the pro-Russian militia commander Aleksandr Khodakovsky wrote on Telegram in June.”
Russia is good at rockets, yet:

“came to rely on such battered, inexperienced troops after months of tactics that more closely resembled 1917 than 2022. Commanders sent waves of troops into the range of heavy artillery, eking out a few yards of territory at grievous tolls.”
/end

Great, very long piece.

Huge kudos to the NYT team (photo below for credits) for pulling it together.

Check out the full article, with so so much detail that I didn’t share in the thread, here: nytimes.com/interactive/20…

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More from @Rory_Johnston

Dec 18
💨🐓 smokin’ the birds

🔥🐄 and now some ribeyes getting some flavour while they wait for their sear Image
🐓🔥👌🏻 Image
Ribeyes back on the fire. Image
Read 4 tweets
Dec 18
🇲🇽🛢️ Evergreen oil industry basket case:

“Billions in Oil Riches Vanish in Latin America as Pemex Stumbles

Pemex has seen its crude output decline almost every year since 2004 as mismanagement, debt and failing projects drag down Mexico’s oil giant.”
bloomberg.com/news/articles/…
Wrote about and charted Mexico and Pemex’s historic fall from grace here:
commoditycontext.com/p/the-ruins-of…
Back to takeaways from the OG Bbg piece:

“At current production rates, Latin America is underperforming its potential by about 12 MMbpd, one expert estimates.”

That’s… a lot—like an entire other Saudi Arabia opportunity cost a lot.

(Tho really love to see those assumptions…)
Read 9 tweets
Dec 16
🛢️ Re: SPR refill announcement

Yes, 3 MMbbl is smaller than the >200 MMbbl they've sold this emergency release cycle (nailed it).

But this is new territory, was always going to be cautiously implemented, & is undeniable progress—signal to market they'll actually follow through.
They'll learn a lot through this purchase, tune and adjust the process, and then purchase a larger amount the next time.

The SPR hasn't needed to be nimble or all that market-aware for the vast majority of its existence, and these muscles will take time to train.
As for those saying it's only 100 kbpd of effective demand (so you think it's "demand" when it's going into the reserve, eh?), I point you back to the above comment on pace and scaling up.

Also, the market is weaker but not nearly as weak today as it was tight in March-June.
Read 9 tweets
Oct 24
🇨🇳🛢️ BIG CHINA CRUDE DEMAND DATA PRINT:

Latest [delayed] Chinese data shows refinery runs hit their highest level in September (~13.9 MMbpd) since February—BEFORE the ramp-up of China's COVID-zero lockdowns.

That's up 1.2 MMbpd m/m! (up ~180 kbpd y/y)
Unfortunately we still don't have the more granular refined product output data yet so can't land on a final apparent demand number, but this'll obviously help!

That said, we know that *some* of that will get eaten up by the continued ramp in refined product exports:
Data via National Bureau of Statistics—OG series off Bloomberg, but it's raw & awful like all Chinese oil data: this is in thousand tonnes, & you're missing Jan/Feb data (inferred in mine off the cumulative sister series)

For my barrel conversion I just used a simple 7.33 bbl/t
Read 4 tweets
Oct 11
1/🚨 Some context on the WCS blowout from an anon follower in the know (thanks, Sam!).

Summary:
- heavy planned/unplanned refinery maintenance
- Mississippi river running dry, PADD2 refs cutting runs bc can't barge out products
- no bid at USGC bc of oversupplied sours via SPR Image
2/ Refinery maintenance:

Series of mounting issues have caused refineries into heavier than expected maintenance:

- BP Toledo exploded tragically
- Marathon Garyville fire
- P66 Sweeny had to pull forward maintenance from early 2023

Tighter and tighter over past few weeks.
3/ Mississippi river running dry:

- PADD 2 (Midwest) refiners typically barge out the products they can't use in the region, especially semi-refined products like VGO
- Harder to do that right now, so more run cuts

Article about the broader issue here:
usatoday.com/story/news/nat…
Read 7 tweets
Oct 11
😱 At $15/bbl under WTI, a barrel of Western Canadian Select (WCS) crude **in Houston**—i.e., no egress issues, just quality—is now sitting at a fresh all-time wide differential.

WCS is 🇨🇦's main export grade—normally wide diffs are caused by pipeline bottlenecks, but not today.
Admittedly this series only goes back to 2018 but I used to infer a similar series for the "quality-proxy" component of the WCS differential from Mexican Maya crude and I don't recall it ever getting this bad.
May have overstated the unprecedented nature of the quality blowout in the top tweet.

The relationship isn't perfect, but here's the spread between Mexican Maya crude (similar-ish quality to WCS) vs LLS (light sweet USGC), 20 day MA.

We've been >$15 before. @William39009143
Read 4 tweets

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