Holiday Hustle: Energy Developments, Travel Records, and Office Escapes
We hope everyone had a fabulous holiday weekend with friends and family while celebrating Independence Day. Of course, with whatever crumbs remain of this work week, we’re all sure that you are diligently “working from home”. Yeaaaaah right. I guess the good news is that your boss is also “working from home”. So, if we have a minute to ditch the flip flops, the grill and the swimming pool, there were some interesting developments on the energy front. It has been reported that Saudi Arabia will prolong its production cut for at least one more month, with even Russia joining in on the fun. The Wall Street oil traders took a moment to lower their sunglasses, still strung around their necks of course, to proclaim “Ooh I’m so scared” thinking that this latest attempt by OPEC+ would be not unlike trying to make a bowling ball float. In the latest episode of “hold my beer”, hedge funds reportedly have a higher volume of short positions in WTI futures not seen since 2017. Now this is what it’s like when worlds collide…Now this is what it’s like.
Speaking of oil traders, how about Hail to the Chief? The DOE announced that they would refill 3.2 million barrels of the SPR at an average price of $71.98 per barrel which is quite a bit lower than the average of about $95 per barrel sale in 2022 when barrels were released. It’s probably better to be lucky than good, but chalk one up for us taxpayers. Do you like hot dogs? Don’t get too excited. We still have $31 trillion of debt and no interest in a balanced budget from anyone who wants to climb on top of the pig pile. The good news is that some inflation indexes appear to be moderating. With WTI entering the holiday at around $70/barrel, the contango continues to repel attempts at backwardation fostered by the headlines. That means keeping oil in storage, at strategic locations, may present an opportunity for some less expensive optionality. At least for this week, while we’re all “working from home”. Either way, we can all celebrate our pride for the flag since it is a symbolic component of our American history—and it is the most embracing symbol of democracy that the world knows today. It continues to fly for all Americans.
Not everyone stayed home. In fact, AAA projected 50.7 million Americans traveled 50 miles or more from home this Independence Day weekend, setting a new record for the holiday. This year’s projection surpasses the previous July 4th weekend record set in 2019 of 49 million travelers. It took hours for outdoor enthusiasts to find a parking space in Yosemite, and that’s after spending hours snarled in traffic. You were there, now you are here. It got even crazier up in the air. Air travel is also expected to set a new record with an increase of 11.2% over 2022 and 6.6% over 2019. The previous July 4th weekend air travel record of 3.91 million travelers was set in 2019. That’s right. A pre-pandemic level has already been exceeded. What’s funny is that it was only a couple of weeks ago that The Tank Tiger fielded several inquiries for Jet Fuel storage. Meanwhile, The Tank Tiger was manning their office at the Jersey Shore. Rosie’s pizza, Kohrs Ice cream, zeppoles and Richie bars for all of our friends!
