Business

Previously we documented that as a result of the still low oil prices, largely a result of Saudi Arabian strategy to put high cost producers out of business and to remove excess supply, none other than Saudi Arabia has been substantially impacted, with the result being dramatic state budget, a sharp economic slowdown and  mass worker layoffs.

Just three weeks ago we reported that the biggest construction conglomerate in the middle east, the Saudi Binladin Group had announced it would layoff 50,000 workers ot a quarter of its workforce, slammed by the weak economy.

Following API's smaller than expected draw overnight, DOE data showed an unexpedted 1.31m barrel build (3.5m draw expectations). This was offset by considerably bigger than expected draws in Gasoline and Distillates and Cushing oinventories rose less than expected. Crude production also fell once again, to its lowest since Sept 2014. The initial kneejerk was a mini-flash-crash in crude prices.. but that was rapidly bid back to unch...

API:

Stocks are now on borrowed time.

Corporate buybacks have been the single largest driver of stock prices in the last quarter. Institutional investors have been net sellers for 15 weeks. And individual investors have been pulling capital out of stock funds in record amounts.

This leaves corporate buybacks as the sole driver of stocks. But now that is ending.

Announced buybacks plunged 34% in 1Q16. This is the single largest plunge in announcements since 2009.

As an equal opportunity information-provider, we thought it worth noting that following yesterday's panic-selling puke in precious metals, this morning we are greeted with panic-buying as Gold and Silver spike higher on heavy volume as US stocks open...

8,500 contracts in 4 minutes - or just over a billion dollars notional paper gold bid...

When crude oil prices started to collapse, the great American unwashed were told - day after day - that low oil prices were "unequivocally good" for them. That myth was destroyed as rent, healthcare, and debt-reduction trumped consumer gains. However, as angry Americans are seeing every day now, gas prices at their local pump have been soaring... having never dropped as they should.