Updates
August 23, 2013:
Platts is reporting US RIN prices fall amid aggressive selloff from one refiner.
US RIN prices fell again Thursday amid an aggressive selloff from one obligated refiner, multiple sources said.
No
broker or trader sources could confirm the identity of the party, but
at least three brokers and two traders said there were market talks of
heavy selling from one obligated party.
"They're just unloading
right now," one broker said. "Everyone's scrambling to figure out why."
Corn-based ethanol (D6) RINs for 2013 were assessed 2.5 cents lower
at $0.74/RIN, current-year advanced biofuel (D5) RINs shed 2 cents at
$0.8150/RIN, and current-year biomass-based diesel (D4) RINs fell 3
cents to $0.86/RIN.
Current-year RIN assessments fell for the
third straight session following the Platts record six-session ascent
that ended Monday.
Original Post
"
Fed stays the course on bond buying." This tells me one thing: things are not so good in ObamaNation.
Wells coming off the confidential list have been posted; OXY USA has another OXY USA well.
The
Yahoo! Finance link to NYMEX crude oil price is broken (again) at its homepage.
A reader tells me that the price of gasoline in China is $4.78/gallon. That is in line with
this report in which gasoline is said to be $4.73/gallon back in July. (US dollars)
Car sales to rise 12% in August -- JD Power.
Active rigs: 185 (steady)
RBN Energy:
the woes of Alberta natural gas -- stuck in the middle.
Unemployment numbers will be out later today (initial benefits claims) but
Gallup is already reporting a huge jump in the unemployment number.
Outside of the federal government's Bureau of Labor statistics, the Gallup polling organization also tracks the nation's unemployment rate. While the BLS and Gallup findings might not always perfectly align, the trends almost always do and the small statistical differences just haven't been worthy of note. But now Gallup is showing a sizable 30 day jump in the unemployment rate, from 7.7% on July 21 to 8.9% today.
I assume the administration is already massaging the numbers; the report will be nowhere nearly as bad as reality.
Energy News
China's demand for oil is growing significantly,
according to Platts:
China's apparent oil demand in July rose 6.6% to an average 9.82
million barrels per day (b/d) or 41.52 million mt, according to a
just-released Platts analysis of Chinese government data.
On a month-over-month basis, apparent demand in July was down 1.7% from
June but still demonstrated robust growth, which observers believe is a
sign China’s recovering economy.
Apparent oil demand in June had soared 11.7% from June a year ago to an
average 9.99 million b/d – which was the highest growth rate since
February 2011.
Great news for the Bakken: North Sea oil production to fall much more than expected.
Rigzone is reporting:
Britain's North Sea energy output will fall this year more sharply
than forecast in February as ageing fields grow less productive and need
more maintenance, and it will not start to pick up until 2015, Oil
& Gas UK said.
The industry association also highlighted in a report on Wednesday
that the production efficiency of existing North Sea oilfields "remains
in worrying decline" despite an upsurge in investment this year.
Drops in oil and gas output have held back Britain's economy in
recent years, hitting attempts to stimulate growth, which is expected to
be a major issue in the 2015 general election. The body's forecasts
disappoint expectations for the pace of a revival.
The group said it now expected production of between 1.2 million and
1.4 million barrels of oil equivalent per day (boepd) this year, with
similar output in 2014, before an improvement begins.
Remember: Britain came within six (6) hours of running out of natural gas during the late winter cold snap in 2012-2013 winter.
Platts is reporting that
the increasing price in RINS is altering refiners' blending policies:
The price of ethanol RINs has rocketed in 2013 to more than $1 and
the price of 2013 ethanol RINs hit a record Platts assessment of
$1.44/RIN in July. Up until early this year, they traded at a few cents
per RIN.
A RIN, or Renewable Identification Number, is generated when a gallon
of biofuel is made. When the renewable fuel is blended with gasoline or
diesel, the blender gets that RIN, which can then be used to meet its
federal renewables targets or traded for cash. Refiners that physically
blend renewables can cut the amount they spend on RINs purchases, and
even gain a $1/gal credit on blending biodiesel.
Some market sources said that sellers, especially big market players
in the gasoline market, are “slamming the racks” by offering mostly
conventional gasoline, blended with ethanol, at lower prices.
The smaller refiners, in turn, are being "slammed." Regular readers know my feelings about RINs.
O'BamaCare
Another company that will move full-time workers to part-time status due to O'BamaCare: AAA Parking --
The parking garage
operator, which employs more than 1,600 companywide, will move about
half of its 500 full-time hourly employees to part-time status effective
April 15, in response to the law Congress passed in 2010.
Wells Fargo will cut 2,300 mortgage-related jobs saying activity will slow this year. Anyone following the news knows that house sales are up -- so one of two things is going on: either Wells Fargo sees something the rest of us are not yet seeing; or they are pulling folks off the payroll in anticipation of ObamaCare (yes, I know big corporations got a one-year delay in implementing O'BamaCare, but often big corporations go through months of analysis prior to cutting 2,300 jobs -- they would have done that analysis in anticipation of O'BamaCare. Even with O'BamaCare delayed, it would make good sense to cut those employees if the company could afford it. Again, WFC didn't just wake up yesterday and decide to cut 2,300 jobs -- the "study" was probably begun before the decision to delay O'BamaCare was announced).
Miscellaneous
This looks really, really serious now. Not only are
the Japanese putting out a call for help, the call is described as a "prompt" call in help in stemming the radioactive leak. Wow, I'm glad our Secretary of Interior doesn't have to worry about really BIG problems.
California regulators have taken a page from the Obama administration on how to respond to a big energy company who causes mayhem: bankrupt them.
California is considering sending PG&E into bankruptcy for an explosion in 2010 that killed eight people. This would be the second time in 12 years that PG&E has filed for bankruptcy.
WSJ Links
A Coptic monument in Egypt was finally destroyed after centuries of withstanding other threats.
Why Virgin Mary Church endured until modern times is a mystery. Some
churches in Cairo survived because Coptic popes made them their
residence. Being built on a place Jesus and his mother had visited gave
others in Egypt a claim to fame and a chance at survival, while in still
others the miracles performed by the patron saint were a reason for
pilgrims to visit and donate. Virgin Mary Church had none of these. For
hundreds of years, its sole claim to miracles: a Roman column that,
according to parishioners, produced oil once a year on Good Friday. The
church was probably too small and too remote from the center of
authority to merit notice. Its flock never abandoned it. Most of the
Copts had converted to Islam over the centuries, but in Delga a critical
mass remained that kept putting candles in front of the old icons.
In this maelstrom, the ancient Virgin Mary Church was not spared. In a
day of brutality, the people of Delga distinguished themselves. All
three of Delga's Coptic churches were destroyed. So were a Catholic and a
Protestant church in the city. In place of Virgin Mary Church, the mob
placed a sign: The Martyrs Mosque.
Sort of sums up my feelings about 15th century mentality. The story is about much more than a mere church; it is another genocide story that won't be remembered by the mainstream media in this country. Certainly not be those who get a tingle up their legs listening to President O'Bama.
India in a world of hurt -- oil at record highs.
The price of crude oil is at a record high—if you're in India.
Global crude is trading around $105 a barrel, or nearly 40% off its
historical peak. But the weak rupee has pushed the price of oil imports
into India to their highest ever level in local currency terms. The
rupee has plunged about 14% in the past three months, from 55 per dollar
at the end of May to about 64 per dollar now.
This is particularly painful as India imports four-fifths of its oil
needs—a major factor in the country's current account deficit—and New
Delhi subsidizes the cost of oil paid by consumers. Nomura's Anil Sharma
says every one rupee drop against the dollar adds an extra 81 billion
rupees ($1.26 billion) to the subsidy bill.
The government has gradually reduced fuel subsidies this year,
cutting about once every month. At the current rate, subsidy cuts will
shave an average of 22 billion rupees per month off the total bill this
fiscal year, says Moody's analyst Vikas Halan. But the effect of the
cuts is limited because of the rupee's swift decline. A fall of one
rupee against the dollar wipes out nearly four months of subsidy cuts.
Much of the pain of higher oil subsidies is likely to be felt by India's state-owned oil giant, Oil and Natural Gas Corp.
UPS to end health care benefits for some spouses, citing O'BamaCare. Smart move. Others have already done it; more will follow. Previously reported.
Another one about to bite the dust?
The sun may be setting on the Las Vegas Sun.
So, finally after weeks of nothing, a story on Syria with the word "suspects" in the headline:
the US suspects Syria used gas -- 1,000 casualties would be witnesses if they could talk. Where's Baghdad Bob?
US home sales near four-year high.
Well, how did this ever happen?
A sanction gap allows China to import Iranian oil. Sometimes $2,000/hour lawyers miss little things like this. LOL.
The UK moves to "tackle" income squeeze and consumer spending. If it's the UK, I assume more taxes on the "rich" to offset tax cuts and cuts in fees elsewhere.
In the Mideast,
US policy has "bogged down."
In just a few years, the U.S. has executed a 180-degree strategic turn in the Mideast, from President George W. Bush's muscular interventionism to President Barack Obama's
more backseat approach.
That, according to some regional diplomats and
experts, has disoriented Arab governments and Israel, who have become
accustomed to extensive U.S. leadership in their region.
It's not so much a "backseat" approach as an approach that a golfer would use. Cautious.
Catty
Remember my post from yesterday?
Remember Zimmerman? President O'Bama said he could identify with the
African-American youth that was stalked and killed. Now we have bored,
lazy African-Americans (2) and one bored, lazy white teenager who (are
alleged to have) killed a high-achieving white Australian. The question
is: who will President O'Bama identify with in this most recent killing? He has many choices. You can't have it both ways. My hunch: he won't even mention it.
It looks like I was about 100% correct. Today
from The Daily Caller:
Josh Earnest, principal deputy White House press secretary, said he
was not familiar with the murder of Australian jogger Chris Lane during
Wednesday’s White House briefing.
When asked by Fox News chief White House correspondent Ed Henry about
the Chris Lane case, Earnest responded, “I’m not familiar with it,
actually.”
What incredible hypocrisy. They must laugh out loud in the speech-writing room before coming out to meet the press. This writing is truly as good as "30 Rock" or "curb my enthusiasm." And Josh is so earnest in his answers. I can't make this stuff up.