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Category: Patriot News

WTI/RBOB Jump On Gaosline Draw As US Crude Production Tumbles Most Since August

Last night’s unexpected API builds kneejerked prices lower but a weaker dollar helped levitate WTI/RBOB into the DOE print. While tropical depression Cindy may have affected the data, DOE reports a small build in crude (expectations for a draw) but all eyes were on gasoline which drew 894k, well below API’s build levels and expectation of no change. Production in the Lower 48 fell 55k b/d – the biggest drop since Aug 2016 (likely impacted by Cindy). API Crude +851k (-2.25mm exp) Cushing -678k Gasoline +1.351mm (unch exp) Distillates +678k (+350k exp) DOE Crude +118k (-2.25mm exp) Cushing -297k (-600k exp) Gasoline -894k (unch exp) Distillates -223k (+934k exp) Figures will be tricky to interpret because of impact from tropical depression Cindy, and notably the Colonial Pipeline shipping demand fell to its lowest level in six years indicating the East Coast is well-supplied and the economics to ship from the Gulf Coast are unattractive. The levels are de minimus for sure…but enough to spike WTI/RBOB withg their extreme positioning… As Bloomberg’s Javier Blas notes, forget about crude oil, look at gasoline. The glut in crude appears to be shifting into products as refiners run their plants at record pace. As the 10-year seasonal chart below shows, U.S. gasoline stocks remain above the highest level for this time of the year. But demand for gasoline continues to slide – very...

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Payouts Over $25,000 “Will Experience A Delay” As Powerball Pulls Out Of Illinois Today

As if Illinois didn’t have enough to worry about between an imminent downgrade to junk (as soon as July 1), soaring debt costs, insolvent pension funds, and roads that may soon resemble the lunar surface, today in the latest insult to a relentless series of injuries, the lottery itself, including the popular Powerball and Mega Millions, is set to dump Illinois because the state literally can’t afford to payout winners. As we pointed out a few weeks ago, Illinois Lottery spokesman Jason Schaumburg confirmed that the association has had discussions since 2015 about dropping Illinois, but this is the first time the group has taken action. He called it “another example of why the General Assembly needs to deliver a balanced budget to the governor.” According to WGN9, Powerball sales in Illinois will be cut off tonight and Mega Millions will follow on Friday. Here is what the suspension of ticket sales means for Powerball… Powerball sales in Illinois will be suspended at 9:00 p.m. June 28, 2017. All Powerball tickets purchased before that cut-off time will be valid tickets. All active Powerball subscriptions will be cancelled after the last draw on June 28. The Lottery will issue refunds to players for the remaining length of their subscriptions. When a Fiscal Year 2018 appropriation for the Illinois Lottery is passed, the Lottery will work with the Multi-State Lottery Association...

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Fed Raises Student Loan Rates 15% to 4.75 on 10yr Loans and Your Kid is a G-2 Employee

Student Loan Debt Problem Solved via Soren K. Group and College ain’t what it used to be. And student loans are paving the way to indentured servitude possibly for the next generation. In one admittedly cynical scenario we see in the future a  large number of college graduates unable to repay student loans. We also see a government unable to disclose that default to thepublic and risk its own credit rating being downgraded.  Student Loan Breakdown in 2017 And we see in  this dystopian future recent college graduates being offered deferment and forbearance on their loans if they take government jobs at ridiculously low wages. The deal offered would delay, pay down, or forgive  their loans if they work for the US Gov’t for  10 years. And with one stroke, the US Government has solved unemployment and credit risk to itself. And they have  done  i t (again) on the backs of the working and middle class that some how still thinks the American dream is anything more than a dream. Sound crazy? it is not. Think of the inverse scenario. Law firms and investment banks pay for your MBA if you sign on with them to work for a few more years. Why is it not logical for the US Government to offer jobs to pay for college. A wise woman once said to us in 1983:...

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Watch Live: Congressional Hearing On How The Fed Is Screwing Main Street And Retirees

This morning the House Financial Services Committee is holding a hearing that will evaluate how Federal Reserve policies are adversely affecting households, small businesses, savers, and retirees, and consider policy opportunities that the Federal Reserve could implement to improve economic opportunities for all. The panel will include the following witnesses: Dr. Norbert Michel, Senior Research Fellow, The Heritage Foundation Dr. Paul Kupiec, Resident Scholar, American Enterprise Institute Dr. Karen Dynan, Nonresident Senior Fellow, Peterson Institute for International Economics Mr. Alex J. Pollock, Distinguished Senior Fellow, R Street Institute These witnesses should have plenty of fun material to knock this softball out of the park… [embedded...

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Pending Home Sales Tumble, Unchanged Since June 2013

After modest bounces in existing and new home sales (despite weakness in starts and permits and mortgage application declines), pending home sales in May tumbled 0.8% MoM and were revised even lower (-1.7%) in April. This dismal print was below all economists’ expectations, missing by 4 standard deviations.   This is the 3rd straight monthly drop and 2nd straight annual decline in pending home sales. The biggest MoM decline was in The West (down 1.3%), but as the chart below shows, Pending Home Sales are now unchanged since June 2013. The index is now 1.7 percent below a year ago, which marks the second straight annual decline and the most recent since November and December of last year. NAR notes that prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast. Weaker financial and economic confidence could also be playing a role in the slowdown in contract activity. NAR’s quarterly Housing Opportunities and Market Experience (HOME) survey, released earlier this week, found that fewer renters think it’s a good time to buy a home, and respondents overall are less confident about the economy and their financial situation than earlier this year. “Monthly closings have recently been oscillating back and forth, but this third consecutive decline in contract activity implies a possible topping off in...

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