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Wednesday, August 24, 2016

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:


8/24/201608/24/201508/24/201408/24/201308/24/2012
Active Rigs3174192183188

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

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