Background Noise -- September 26, 2015

Platts is reporting:

US Midwest gasoline prices shot up Friday as market sources said inventories in the region are drying up.

Active trading early in the day pushed the assessed cash differential for Chicago CBOB up 11 cents to the NYMEX November RBOB futures contract plus 33 cents/gal. Offers as high as futures plus 36 cents/gal were heard in the afternoon.

"I think inventories are getting low," one Midwest trader said.

Data released this week by the US Energy Information Administration backed that up, showing total Midwest gasoline stocks falling 434,000 barrels to 47.53 million barrels for the week ended September 18. CBOB stocks fell 1.07 million barrels to 28.47 million barrels.

The EIA said Midwest refinery utilization rates dropped 6.2 percentage points to 92.1%, while crude runs fell 235,000 b/d to 3.54 million b/d. "It's just got a lot of little problems keeping refiners off the offer," a second source said. "Phillips 66 and Marathon have been steady bids and I hear Whiting rumors."

BP's 413,000 b/d Whiting, Indiana, refinery shut a 75,000 b/d crude distillation unit on Thursday for planned work, according to IIR Energy.

Inventories getting low?

• 434K / 47.964 million = 0.1% decrease in Midwest gasoline stocks. 
• 1.07 million / 29.54 million = 3.6% decrease in CBOB stocks
• 235,000 / 3,775,000 = 6.2% 

Somehow I think we'll manage.

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A Sign Of The Times

But We Saw Same Thing In 2011 When Boom Was Just Beginning

The Dickinson Press is reporting:

Job Service North Dakota is offering its employees voluntary buyouts and looking to cut other costs to cope with a $4.1 million budget shortfall for the fiscal year that begins October 1, 2015.

Data points:

• annual budget in the range of $30 million
• funding was cut $2.5 million for 2016 
• 226 employees; article does not say but looks like less than ten employees will be laid off
• in 2011, similar process resulted in loss of 6 employees
• 97% federally funded
• 16 locations across the state
• website still sees increased demand; 17,400 job openings listed
• Williston with 1,400 jobs listed; 74 added on Tuesday last week
• unemployment funds from trust fund not at risk

In the military, we experienced RIFs (reductions in force -- generally civilian, but often military), it seems, every year. Background noise; the ebb and flow of society. 

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Political Funding

Is Watford City A Bigger Source Than Williston, Minot?

The difference in the size of the pink dots is almost imperceptible, but it certainly appears Watford City accounts for more political funding than Williston and possibly Minot. Now, who in Watford City would be funding whom in the race for US president? Curious minds want to know.