. >> reporter: they call cushing, oklahoma, the pipeline crossroads of the world.nd last october there was a magnitude 4.5 earthquake near here. and it got folks worried that not only do these earthquakes pose a risk to life and property, but also to the country's energy infrastructure. oil and gas companies rely on giant storage tanks in cushing to hold up to 85 million barrels of oil. if an earthquake were to compromise those tanks, it could disrupt oil markets worldwide. october's quake was the fifth near cushing greater than magnitude 4.0 in just a year. last fall, the corporation commission ordered companies to slow or stop wastewater injections nearby in part to protect those oil tanks. do you feel that those facilities are able to withstand the increased seismic activity we're seeing in oklahoma? >> i do. >> reporter: michael teague is oklahoma's secretary of energy and environment. he says the industry and federal inspectors regularly check those tanks. >> i'm also comfortable that if there was an area that's got to focus on it for the corporation commissio

had 2in areas to note, includes cushing, 13% of capacity. this is the u.s. gulf coast. we now? these were the numbers released today. this includes oil in pipelines, in transit and least. we are at high levels. this is pushing right here. are we maxed out? cushing has a bit more room as you can see here, not at max capacity. little sketchy here. this includes pipelines and in transit but it looks very full and a little bit of room left in 5. believe it or not a chunk of it is imported, traders are sending oil into the u.s. to be stored. last week we did see a fallen imports. part of that was because it was foggy and ships weren't able to get approval for 12 hours to get into port and that may have distorted data. energy aspects said imports will hit the east coast in the coming weeks. is oil storage tight? this is the price difference between light louisiana sweet crude versus two months. prices are just under two dollars cheaper than in two months. $.50, tradersound store the oil because they can make a profit waiting to sell. the fact that this has blown out so much s

metal seat r says cushing frames could cut the belt in a crash. the recall involves the vehicles between 2005 and 201 dealers will replace the seat belts free of charge. up next on saturday news extra, we have about six more minutes left. in that time we are going to introduce you to d.c.'s teacher of the year and find out why his students say no one deserves this honor more than he i do everything on the internet. but, it's kind of slow. my friends say i should get fios because it's the fastest. i just downloaded 600 photos in 60 seconds. that's seriously better. (husband) we're out of 2%! i wonder what else could be better around here? (husband) i heard that. switching to better internet is now easier than ever. only fios has the fastest internet available, with uploads up to 5x faster than cable. get 100 meg upload and download speeds. plus tv and phone for just $69.99 a month online with no annual contract. >> a rare honor for an art teacher. this d.c. recently named teacher of the year. kelly v

vergil & jackie heyer of cushing, iowa wiwi celebrate their 62nd wedding anniversary on saturday february 20th. if you or someone you know is having a birthday of 80 years or more or an anniversary of 50 years or more, please send in their name (and correct pron), address and telephone number along with their pictures to ktiv. please make sure to have all the informationon printed and send it in at least two weeks in advance. if you would like your picture returned please enclude a self addressed stamped envelope. happy birthday and happy the number of farms and ranches in nebraska declined again last year. the u-s department of agriculture says the number of farms and ranches in the state went down 400 from the the number of small farms with less than 100-thousand dollars in revenue declined 500, while the number of large farms increased by 100. the average size of farms in nebraska increased by 7 acres to 928 acres. iowa has lost the bid to house the corporate headquarters of the agricultural company that will form m ter the dupont-dow chemical merger is complete. dupont and dow announc

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estimated build in the inventories of 3.5 million barrels and a build in particular at inventories in cushinghoma which is the biggest hub in the united states. that's a bigger than estimated decline in gasoline inventories at 2.2 million barrels in a bigger than estimated decline in distillate inventories of one point 7 million barrels. those are the overall numbers. it looks like that build is larger than estimated but we will see how it plays out considering the refined products like gasoline and distal it's saw a build. that we will see more of a drawdown of crude oil inventories? right now, we are not seeing movement as of yet in oil prices. it tends to take a little bit of time for traders to react to these numbers. let's take a look at my terminal. it looks like we are seeing delayed pricing. there is a spike up in oil but still down on the day by 2.5% and coming off the lows of the session. we will see how this plays out over the next several moments. let's take a look at the actual inventory chart. let me call up the number. this looks at the inventories week by week and it looks lik

how soon do we run out of store at cushing and does it matter?we don't think we run out of storage, but we think it's going to become increasingly expensive to store that extra barrel in curbing, and that will result in more oil coming down the coast, down the united states, and filling up in the gulf coast. so we're going to see movements in the differentials, movements in the time spreads. and obviously what we're seeing right now, at least yesterday, the contango steepened, and resulted -- >> this is where prices further out are higher than prices now? >> exactly. >> so people that are hoping that all the swimming pools will fill up, that will result in a drop in u.s. production? that's a bridge too far in your view? >> we do expect that u.s. production is going to adjust and it already has. remember, it's been coming down 50, 100 barrels a day every month for the last several months since april. we expect that to continue over the kouf the course of this year. but is that enough? even if we see 7,000, 8,000 barrels a day less u.s. production,

on locally are severe problems with congestion of oil surplus and places like cushing, oklahoma. one thing that happened last year when we tested the lows is that you blew out the spreads between spot prices in the ford prices -- and the ford prices, an indication that you are bumping up against capacity constraints. live and how high the inventory levels are in the u.s., there is a high probability that that cash price collapses and goes on to expiration. when you look at these markets and go back to late 2008, 2009, and you are in a high inventory surplus, when you go to expiration, look for prices converging down as opposed to up. alix: we will be talking about that in the next segment. jeff is sticking with his. is it time to short gold? that call is coming up next. a stock surging in late trading, kindergarten, berkshire hathaway disclosing a new steak and the largest company in the u.s. ♪ >> let's get the first word news this afternoon. the supreme court is honoring the life and service of justice antonin scalia by draping his chair and bench. inonin scalia join the court 1

let's bring in hidy, senior political reporter for "usa today" and is live with us here at the cushingthere we get reports that the sexism thing may or may not be working. madeline albright, speaking on behalf of hillary clinton -- i don't know if you heard this. don't know if yoóç this.his. >> you have to help hillary clinton, we'll always be there for you, and just remember, there's a special place in hell for women who don't help each other. >> well, in all fairness, that's not something new that madeline albright says. shejihas been using that line fr a long, long time. but heidi, in the context of a political rally there are people who are suggesting that -- >> i did actually talked to madeline albright and i said, explain to me. and -- like you said she has been saying this for years and for older women they get it. the problem is younger women, hearing this for the first time, might kind of take some offense to that. so, i think her message was that for older women, this is something i've been saying all along, but like i said, the people that clinton is trying to appeal to rig

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deputy cushing can ride shotgun until you're ready to come back. sir, we need you. henry would never forgive me if i left now. dalton: what is it? we caught a break. this is security footage of linda peavy outside a coffee shop five blocks from the conference. it's a dead drop. the dirty bomb is in that backpack. and this is the man who left it do we know who he is? facial recognition identified him as munthir tuwala, an agricultural attach\ at the saudi arabian embassy. a saudi diplomat did this? tuwala entered the united states by car early yesterday morning from quebec after a flight to montreal from bucharest. elizabeth: which is only about 200 miles from the moldovan border. our working theory is he was able to use his diplomatic pouch to smuggle the nuclear material into the country. son of a bitch could be the key to finding disah in libya. dalton: where's tuwala now? at work, at the saudi embassy on new hampshire avenue. where we have no jurisdiction. marguerite, deploy an fbi tac team to the embassy. general kohl, i want the national guard providing backup.

once cushing tanks fill up, we could see that price under a lot of pressure. guy: good to see you. come back to the markets. we are seeing some fairly interesting moves. the fixed income story. the company is moving. we got the currency markets on the move. let's show you the story in london. down by 2.5%. remember we rallied strongly yesterday echo we are seeing some fairly aggressive swings and a number of asset classes. ♪ guy: 50 minutes past the hour. welcome back. the market news here fairly substantially -- i want to bring you up to speed with everything else you need to know. tell you what is in store it people's european head of business will appear before the house of commons. i think the issue of how much they pay the ceo could become something of a sticking point. u.s. a little bit later we get weekly jobs claims. those figures at 1:30 p.m. london time. then we get janet yellen. she's going to appear before the senate banking committee, testimony that she delivered implying that maybe we are not come to see the full rate hike. sort of a downbeat story that she delivered

mainly at happens in landlocked areas like cushing, oklahoma or austria and other parts of europe. aly to global basis. this sounds like a very fundamental reason for what is happening in the oil market. oil and thet the relationship to the fed, the dollar, etc.. is that secondary to the physical constraints? >> i think there are two points of stress in the oil market that are important. one is operational stress which drives the $20 there'll. -- barrel. oilhink the volatility in price is going to bounce between $20, operational stress on the bottom and $40 financial stress on the top. if they can get to this point -- the difference today versus hasr oil cycles in the past flexible exchange rates in places. the investment grade, equity markets. all of these arrangements were put in place to distribute the risk around the world. historically when we have a collapse in oil prices it is severe and local in terms of economic activity. i want to point something out. we put these risk sharing arrangements in place to make the world a safer place and not a riskier lace. we think of what h

cushing had been flachlt people continue to watch the buildup of stockpiles at the nymex delivery hubive but it's coming well off the lows and we have stayed within this range of about 30 to $34 for about seven weeks or so, notwithstanding some of those big possibles we have seen with the hopes that opec might be moving toward a production cut. now on to sue herera with a news update. >> thank you so much and here's what's happening at this hour. president obama is seeking to nominate a supreme court justice who has an independent mind and understands how the rule of lay affecting the daily reality of people's lives nchl a post on scotusblog.com he urged the senate to consider his nominee. >>> a t family of a woman who claimed she got ovarian cancer from johnson & johnson got a. >>> they found the wreckage of a small plane carry 2g 3 people on board that crashed in bad weather in the mountains of nepal. the plane appeared to have flown directly into a mountain. and 7'vanderbilt josh henderson who had taken only two three-pointers in his career lofting an 80-foot shot. it went in. it g

cushing falls, volatility in the oil markets, how is that feeding into the rest of the story?crude is really centric to so many other risk outcomes. volatility acid at this point, moving sometimes 3%, 8% in a single day. think of an outcome in which crude gets cut in half. it certainly can happen. tremendous applications for credit markets. you take a significant increase in the false, you see central bankers almost robotically responded to faltering breakeven inflation's. they will probably do more policy, some of it not very welcome by the markets at this might. -- point. the other scenario in which crude could significantly rally, you have the makings of a small deal between saudis and russia. it might not be meaningful, but to the extent they are able to make crude go back up potentially in rapid fashion, that has significant implications for currencies like the ruble, currencies like the canadian dollar. the way in which the market has priced the fed out of the game for the entirety of this year and even next year, maybe that is on the table. all of these outcomes are lin

. >> that has to be one cush, flight attendant job, right? >> that's nice. >> they get to travel. every job has the challenges. you know what i mean? >> i'm sure unruly passengers who dance in the aisles to disco music. and ask for more champagne. >> trouble right there. get you going out the door. obviously had decent weather yesterday but today, could be a rough day to do flying. in fact i know airports are backed up because of the weather out there. we also have weather advisory. winter weather advisory for northern tri-state. we haven't heard too many reports of problems with that. here we're going to he see problems. the counties, including the city, all five boroughs as well, and connecticut, jersey shore, 4:00 tomorrow morning. south winds come through 25 to 35 miles an hour. gusting to 45 to 50. flights coming into and out of the new york area will have problems. so far showers not a big deal. scattered mainly overnew jersey. some up lower hudson valley. not much happening over long island and connecticut. you do have low fogs, cloud and drizzle in the area. temps haven't

cushing is almost there the top. -- maxlook at math storage capacity, 9 million barrels to go. little full but remember i told you we have oil in transit as well as pipelines and that is why looks maxed out. we are like 50 million barrels away from ask capacity. a little wiggle room but things are getting tight. where is all the oil coming from? imported and is basically traders are sending oil into the u.s. to be stored with a big spike up in the last few months. we saw a 14% decrease last week. energy aspects also said there is about 25 million barrels of import that will hit the east coast in the coming weeks. if storage issure actually tight? this is the price difference between sweet crude one-month versus two months. it is telling you prices in one month are almost two dollars cheaper than in two months. $.50,he spread is about they store oil because they can make a profit waiting just one month to sell. the fact that this has alone up so much, it shows it might not be available or else someone would have used it. what happens next? insight here with some is dan from hous

we have to dig inside this report, what happened in cushing, and where we see production standing.ight weeks of increases in production, last week, we saw a tiny drop, but still at 9.2 million barrels per day. some of the reason we were up a bit earlier this morning, "wall street journal" headline from the ecuadorian president saying an emergency special opec meeting was probably going to occur this month, but this number enough to wipe out all of those gains. crude oil trading at $30.10, now pushing positive again. sara eisen, back to you. >>> let's get over to meg terrell with some news on the martin shkreli hearing. >> that's right. the shkreli appearance in court just ending. it was largely procedural, just setting dates. his new attorney saying given the complexity of the trial and the fact he just took over the case, they're waiving their right to a speedy trial. so the next court appearance will be made 3rd. the other interesting thing that happened, he's out on a $5 million bond. they were basically holding a lean on his e-trade account which they said had held $45 million

we saw this in terms of what's happening in cushing, oklahoma is that the inventories and surpluses areagainst infrastructure constraints and that's constraining the ability of supply and demand to adjust, which means price has to do all the adjustment. there is one thing we think is cheap and that is volatility. >> the theory of $20 oil and we have to have this aggressive move to the downside -- the conversation we're having this morning, are we at that level already where we see that sharp move to the downside or is $30 crude not enough? we saw the market first go down to 26. we are definitely in the zip code and these numbers, the 20 is based on what we call cast -- cash cost. cashs have to spike below cost because you have to shut production and almost immediately. for us to nail that number down perfectly is difficult. i would not be surprised if this market goes into the teens. that 26 or got into $20 range, we started to see some action and we certain to see price volatility turn into fundamental volatilities. i think the most striking feature of this market is the lack of a supp

you mentioned cushing the spending on medicare and medicaid. security, let me ask you this question. fellow governor chris christie is saying seniors who earn $200,000 or more should not get any social security benefits, even though they paid in their whole life. what's your take on that? >> i have a plan. i would say the wealthiest americans will get less than what they thought they would get. those who totally depend on it can get what they need to have. that will balance out the system forever. we're working on all the numbers. i'm working with some of the smartest people i worked with in washington. i don't think you wanted to -- i don't like the idea of turning it into a welfare program. >> that's what you're doing. that's what you're doing. >> i think what you can do is be in a position of where for those who have been healthy, those who have been high-earners, they'll get less. not zero. >> just grow the economy at 4% that will take care of those numbers. >> no, it won't. >> yes, it will. >> no, it won't. demographic problem is too sever

of paying for a whole box, you can buy just 1 or 2 premium tickets to get into the rolex 24 lounge. cush seating, a wig bar make this essentially a giant luxury suite. over that bar hangs a work of heart that pays homage to the tracks. >> we did a chandelier of all 12 of our race tracks starting with talladega to the shortest. and daytona is in green and the rest are white. >> there are bathrooms and the average fan will find the track and its sponsors went all out. fox 35 news. >> yeah, some amazing changes. if you haven't driven up to the stadium yet and you see those injectors, like they said, it just sets the stage and doesn't feel like it used to. it felt like an old stadium. i don't think they'll be upset with us calling it that. stadium. it's comfortable. they have huge screens out here. you'll be able to see everything. >> i think the fans like it. >> we know that driver kyle bush is up there. throwing out t shirts. the fans are loving it. and they were talking about valentine's day a coupleinants ago, and what eye do and don't do with your girlfriend, wife on valentine's day. it

we are going -- rusty brazil was on tv last week talking about how the cushing inventories are unbelievablyigh. there's maybe more room. but there's a lot of oil that you can't tell where it is. i think the idea that we only have 1 million barrels extra is wrong. >> you more worried about banks, energy or f.a.n.g.? looking at some of these tech names down from their highs, linkedin, obviously last week, baba down by a third, yahoo! 40%. netflix today will be sub 80. >> what a rose gallery that you have. i do think that f.a.n.g. is still up dramatically from the bottom. people have to recognize. thank you to bob lang for this. f.a.n.g., talking about facebook, amazon, netflix, alphabet, up 166% versus the s&p up 25%, nasdaq up 39%. we use the term reversion to the means, these can come down, but not all of them are that expensive versus tableau data, which was highly valued. when you talk to analysts about linkedin, they were like that was a bomb drop. >> that was destruction. people thought linkedin was doing very well. >> 44% in one day. >> the way they turned on it. i'm so used to analyst

cushing might be up to seven million barrels over the week.n -- emmett to shift and shift dramatically, there has to be an exogenous event the market does not see right now. matt: thank you so much for joining us. john brady at rj o'brien in chicago. coming up, neel kashkari says financial reform has not gone far enough. ♪\ stephanie: you are watching "bloomberg ." we are watching markets in the dow, andfutures, s&p, the nasdaq, all of care we had a good day out -- all up. we had a good day out of europe. credit agricole, their stock is up 30%. extraordinary if you think about what banks went through next week. we're here with neel kashkari, who has a lot to say about banks. he is the minneapolis federal bank president. welcome. we have some breaking news. a little bit of data. matt miller is going to give that to us. matt: disappointment in housing starts -- month over month, housing starts fell 3.8%. we looking for a gain of 2%. one million, 99,000. a little bit of a miss there. loving permits climbed. -- building permits climbed. buildi

cushing is within one month of capacity fill. i think we had a spike yesterday.re up a little this morning. i think the direction is down into the 20s. >> you pointed out, by the way, this is a note you put out just two days ago, where you said you thought the ten-year yield would head as low as 1.75%. it almost got there yesterday. but we also have a lot of other market experts who came on yesterday from larry fink to bill miller to larry blankfein who said they thought this selloff was a little overdone at this point. how do you match up? >> well, i think there are a couple things going on here. the treasury recently announced they're cutting back on the issuance of treasuries. two, yields in europe, japan are so far less than american yields that there's a lot of money that comes to america to get some kind of yield in sovereign debt. and three, i don't think that the fed -- and if they do something, it would be, my opinion, absurd -- but i don't think the fed is going to do anything for the rest of the year given the market turbulence they caused by raising r

they would prevent addiction, promote recovery and cush the scourge of drug addiction in my state and others across this country. there is much work ahead for all of us in this area. the actions we are taking hopefully here this week in washington are simply first steps. this bill builds on the tireless work being done at the state and local levels by communities, law enforcements and health professionals all across this country. they're working together, and by working together, we can change these statistics and stop more tragedies from occurring, stop the families and tragedy, stop the -- the human tragedy of losing a loved one, of losing that loved one into the work force, losing a mother or father. i urge my colleagues to vote to begin debate on cara this evening and to support this important legislation. my concern, i'm concerned we are in jeopardy of losing the next generation, so we have much work to do. thank you. mr. cornyn: madam president? the presiding officer: the senator from texas. mr. cornyn: madam president, as we've heard from the senator from west virginia, this we