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Fri, 26th May 2017

Anirudh Sethi Report

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Archives of “May 17, 2017” Day

US weekly oil inventories -1763K vs -2673K exp

Weekly oil inventory data from the EIA

  • Cushing +35K
  • Gasoline -413K vs -1000K exp
  • Distillates -1944K vs -1450K exp

Oil slumped yesterday after the API numbers, which showed:

  • Oil +882K
  • Cushing -539K
  • Gasoline -1790K
  • Distillates +1790K

So while the headlines initially look bearish, the bad news was mostly priced in — except for gasoline.

On the headlines, crude jumped to $49.40 from $49.00. Friday’s high was $49.66.

Don’t rule out oil output cuts beyond Q1 2018 – Rosneft

Russia oil head on working with OPEC

  • Main objective is to have stable oil price after global deal expires
  • Asked energy minister Novak to agree on a future mechanism for a smooth exit from the global oil output cut deal

Meanwhile, BP’s chairman said he sees global oil demand peaking in 2030-2035. With technological advances, it’s tough to see any floor under crude prices in the longer term.

The H-1B “Scam” Exposed

The federal H-1B program is intended to allow foreign workers into the US to do high-skill jobs for which employers can’t find qualified domestic workers. In reality, it’s a way for US employers to lower their labor costs, ignoring the large pool of fully qualified (but more expensive) US workers in favor of cheap foreign labor.

This isn’t a small program, either; in 2014 there were 124,326 new applications approved and 191,531 renewed. Since this is a three-year program with one possible renewal, the total number of H-1B foreign workers in the US is triple that, or close to a million lower-wage workers in positions that should otherwise go to US workers at much higher wages.

Where are those workers coming from? According to a recent report to Congress, in 2012 most – 64% – come from India, with no other country sending anywhere close to that many (China came closest at 7.6%).

Infographic: India & China Accounted For 82% Of H-1B Visas In 2016  | Statista

48% Of Americans Want To Impeach Trump

Update: We can only imagine what the poll says after tonight’s debacle from The New York Times.

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According to a new survey by the Democratic polling firm Public Policy Polling (PPP), 48% of Americans want Trump impeached.  Of course, while it makes for a provocative headline, the poll does little more than prove that (i) pollsters are still using generous Democrat “oversamples” and (ii) Trump’s favorability is heavily dependent on ones party affiliation with 81% of Hillary voters supporting impeachment and 83% of Trump voters opposing it.