Speed of Saudi Oil Recovery In Focus After Record Supply Loss

(Bloomberg) — All eyes are on how fast Saudi Arabia can restore production after this weekend’s devastating strike on key facilities, which knocked out roughly 5% of global supply and triggered a record surge in oil prices.

Significant volumes could come back within days, people familiar with the matter said over the weekend, adding that it could still take weeks to restore full capacity. Industry consultant Energy Aspects estimated in a note Sunday that the country will be able to restore almost half the lost production as early as Monday. Saudi Aramco said in a statement dated Saturday that it would provide an update in about 48 hours.

“We need to know if it’s a 48-hour outage or if it’s a four-week outage,” Ashley Peterson, a senior oil market analyst at Stratas Advisors, said on Bloomberg TV. “That’s really what’s going to drive prices.”

The estimated 5.7 million barrels a day of lost Saudi oil is the single biggest sudden disruption ever, surpassing the loss of Kuwaiti and Iraqi supply in August 1990 and Iranian output in 1979 during the Islamic Revolution, according to the International Energy Agency.


Oil Prices Soar After Attacks on Saudi Facilities

Any excuse to jack up the price of U.S. oil.
At 12+ million barrels a day, we produce more than Arabia’s 11+ million!

Oil prices hit their highest in four months after two attacks on Saudi Arabian facilities on Saturday knocked out more than 5% of global supply.

At the start of trading, Brent crude jumped 19% to $71.95 a barrel, while the other major benchmark, West Texas Intermediate, rose 15% to $63.34.

Prices eased back slightly after US President Donald Trump authorised the release of US reserves.

Rural King says it will ‘stand in support of Americans and the Second Amendment’ as other retailers change gun policies.

TERRE HAUTE, Ind. (WTHI) – While companies like Walmart and Kroger are changing their policies on people who open carry firearms… and in Walmart’s case, the sale of handgun ammo another store says it is sticking to its policy.

Rural King said it will continue to support the Second Amendment.

On Wednesday morning we found a sign inside of their Wabash Avenue location in Terre Haute.

It says ‘While some retailers are bowing to the pressures, Rural King will continue to legally sell its firearms in-store and online.

Customers we spoke with say they support the decision.

“I was grabbed from the window of my truck at a Speedway, and I went out immediately and got my own personal protection. I think we need that, and I think we need a place to be able to buy ammo,” Shelly Hoffman told us.

“If Walmart is going to take away your right to carry in their store, because of people who break the law with their guns, are they going to take away the auto parts for people who drunk drive?” Doug Beder said.

See the full statement below:

“Many rural Americans are defenders and supporters of our rights and the 2nd Amendment. We at Rural King are proud to stand with these Americans to protect and defend our freedoms.

While some retailers are bowing to pressures involving the selling of firearms, Rural King will continue to sell firearms lawfully in all our stores and online at RKGuns.com.

Hunting, camping, fishing, and other outdoor activities are some of our most treasured traditions and are woven into the fabric of rural America. At Rural King we are dedicated to living, loving, and embracing the rural lifestyle and carrying the products our customers expect.
We would like to thank you for shopping at Rural King and God Bless America!
Sincerely,
Rural King
America’s Farm and Home Store”

US lifts ban on old-style light bulbs.

Econuts squeal in dismay.

The US is scrapping a ban on energy-inefficient light bulbs which was due to come in at the beginning of 2020.

The rule would have prohibited the sale of bulbs that do not reach a standard of efficiency, and could have seen an end to incandescent bulbs.

Many countries have phased out older bulbs because they waste energy.

But the US energy department said banning incandescent bulbs would be bad for consumers because of the higher cost of more efficient bulbs.

The Department of Energy said it had withdrawn the ban because it was a misinterpretation of the 2007 Energy Independence and Security Act.

Specifically, the law stipulated that restrictions on bulbs could only be implemented when it was economically justified, Shaylyn Hynes, a spokeswoman for the Department of Energy, told the New York Times.

What If…….

There’s been a lot of “spitballing” throughout the industry since Walmart’s announcement that it will no longer sell certain ammunition calibers. Seems everyone from the manufacturers to the smallest retailer is trying to figure out what the decision means to them.

After all, it’s not often a retailing giant with a reputation for predatory pricing ever cedes market share of anything. And Walmart says they estimate the impact about 12-14 percent of the entire U.S. ammunition market. Since they’re innovators and pioneers in customer information collection, there’s no doubt they’re closer than a ballpark estimate.

Here’s one simple fact: ammunition consumers (shooters) across the country will now be forced to find another source for the fuel to run their guns. If you’re in California, for example, you’re going to be forced to look locally- there’s no option otherwise.

Certainly, it’s an opportunity for retailers -but there’s really no clarity on just what it might mean to small independents………

“It’s really a time of opportunity for small retailers,” Pete Brownell of the eponymous Brownells told me yesterday, “the core of our industry, small retailers are going to have an opportunity to get back some of the business lost by a retailer that focuses on squeezing the margins, not selling based on knowledge, experience and affinity.”

“To me,” he says, “it’s actually good news, although it’s never all good news when any company starts to give in to social pressure.”

He’s right on both points. Granted, some consumers will lose the ability to hit a Walmart for a box of rifle shells, diapers, orange juice and sodas. But they’ll now have a valid reason to go back to the stores where the shelves and displays are full of products they actually enjoy.

 

Farmers prosper in spite of Trump’s trade battle with China

in spite of‘?
But anyway, when you’ve lost The Hill, noted for being left of center…..

Anti-Trumpers agree: The president’s trade battle with China is hurting our economy and, in particular, America’s farmers. We are told that the tariff tiffs have caused a collapse in U.S. agricultural exports to China, and consequent heartbreak in our heartland.

It isn’t true.

As with most criticisms lodged against the Trump White House, this oft-repeated narrative is way overblown. Turns out, far from suffering what CNBC recently described as “a devastating year for farmers” the farmers of America overall are doing quite well.

The Department of Agriculture recently forecast that net farm income will rise nearly 5 percent this year, to $88 billion. That growth comes on top of increases in both 2017 and 2018 and is, just for the record, faster than the overall growth of the economy.

For sure, times could be better. The forecast for this year means that real net farm income would come in 36 percent below its peak of $136.5 billion in 2013 and slightly below its 2000-18 average ($90.1 billion). Farmers suffered a severe drop in total revenues during the Obama years, collapsing from $484 billion in 2013 to $412 billion in 2016. Weirdly, I don’t remember the media paying much attention.

Not all farmers are expected to enjoy rising income this year. Commodities receipts are forecast to decrease $2.4 billion, or less than 1 percent, to $371 billion, while sales of animals and animal products should climb modestly.

And that dreadful soybean collapse? The DOA is estimating that revenues for all crops will decline $3 billion, or under 2 percent, thanks to crimped soybean sales. But payments to farmers under the administration’s Market Facilitation Program, in addition to other subsidies, will rise almost $6 billion this year, more than offsetting the fall in crop receipts.

Perhaps most startling, the DOA forecasts that the average farm will see net cash income increase more than 11 percent this year, “the first annual increase after 4 consecutive years of declines.” Moreover, the median income of farm households will be up almost 4 percent this year.

At the same time, farmers are getting richer; the net worth of the farm sector is likely to rise slightly this year, to $2.7 trillion, mostly because of higher real estate values.

In short, it turns out that as a whole our farmers are doing ok, or maybe even better than ok. 

AUGUST 2019 ADP Employment Reports

The  anti-Trump media were expecting a drop in employment numbers, but they were wrong. More new jobs were reported in August, than in July.

NATIONAL EMPLOYMENT REPORT

195,000 Change in U.S. nonfarm private sector employment

View full report

SMALL BUSINESS REPORTS

ADP Small Business Reports

66,000

Change in employment among small businesses with 1-49 employees

View full report

NATIONAL FRANCHISE REPORT

ADP National Franchise Report

17,200

Change in U.S. franchise employment

View full report