Gasoline Glut On East Coast Persist; End Not In Sight -- RBN Energy -- August 24, 2016

Price of US oil falls 2% on "surprise" build in crude stocks. Now, why would that be a surprise? We've had almost daily reports that a) shale operators were going back into the oil patch; and, b) more rigs have been added each week over the past eight weeks. Or something like that. I don't recall the details. 

Boomtown USA's crew camps: shut down as of September 1, 2016. Let's see if the court lets this stand.

Starbucks: judge rules that Starbucks is not cheating customers by adding ice to drinks. 

Active rigs:

	8/24/2016	08/24/2015	08/24/2014	08/24/2013	08/24/2012
Active Rigs	31	74	192	183	188

RBN Energy: gasoline glut on east coast; no end in sight.

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Saudi Reserves

Just when Saudi thought things might be getting better.

As I've said for months, $40 oil will kill Saudi Arabia. They budget for $100 oil; they might be able to "swing it" on $80 oil (if they didn't have a Yemeni war to contend with; didn't have to provide domestic subsidies to keep peace in the tribes; and, if they didn't have to import everything they consume) but even $60 oil is not enough. The best they've seen recently is $50 oil and even that didn't last long.

So, how bad is it? June, 2016, was the sixth worst month in the last 30 months -- losing $11 billion from reserve assets.

From John Kemp yesterday:

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The Market

Closing: down 70 points.

• new highs: 101
• new lows: 7

Mid-day trading: market down about 25 points. NYSE:

• new highs: 74;
• new lows: 5, including Noble Energy (NE)

Opening: futures were up slightly overnight, but the Dow 30  opens up 26 points down. T and XLNX are both up; SRE is down about 1%. NYSE:

• new highs: 65; Best Buy;
• new lows: 4