Jet Fuel Jitters and the AI Hype: Why The Tank Tiger is Your Go-To Scout in a Tight Market
Last week, The Tank Tiger had a very good customer ask us to issue an anonymous inquiry on their behalf for Jet Fuel storage in California. The sudden need for Jet Fuel storage was exacerbated by the Crowdstrike failure that grounded thousands of flights and necessitated the storage of unconsumed Jet Fuel. (Aside from that and with full disclosure, $$$MR. MARKET$$$ purchased Crowdstrike call options after their stock price plummeted). What’s important to note here is that the customer knew that it was unlikely that The Tank Tiger could locate a suitable storage solution in California, given the super tight storage market in that region. They were correct, that storage request remained unfulfilled. Having said that, The Tank Tiger was more than willing to execute the inquiry – given that these bids for storage enlighten the market as to where the demand can and will occur. These type of requests will ultimately lead to liquidity and transparency in the storage market which could, and should, translate into CAPEX deployment with greater confidence by the terminal operators given the visibility and ratability of these requests for storage. So the punchline is, if you’re thinking about taking on any storage, let The Tank Tiger do the recon for you – even if you’re unsure of the success of the inquiry. Our service is free if you’re looking for storage.
“The time has come for cuts,” Powell said at the Jackson Hole Economic Symposium. Well, there you go. Tomorrow Nvidia will report its quarterly earnings. It isn’t sensationalism to say that their numbers could lead folks to believe if AI is where it’s at or just another flavor of the month. The interpretation could make or break the stock market. Gold prices hit $2,500/oz last week meaning that a bar of gold is now worth $1,000,000 – just in case you have any of those in your bedroom closet. Ford Motor’s decision last week to curtail production of pure electric vehicles is surely a signal that EV mania is waning. Fossil fuels will be around for a while. Have dinosaur, will travel.
Morgan Stanley has revised its oil price forecasts downward, confirming expectation of increased supply from OPEC and non-OPEC producers without a commensurate increase in global demand. The finance masters of the universe have predicted that the crude oil market will remain tight through the third quarter, then stabilize in the fourth quarter and potentially move into a surplus by 2025. The Tank Tiger is still waiting for Morgan Stanley to resume its go-go days of the 1990’s when they rented out storage tanks in NYH like flies on poop. Who remembers the Aquavit luncheons? Can you feel me boys? Oil prices ended down for the week. Brent oil futures settled at $79.02 a barrel, while West Texas Intermediate crude futures ended the week at $74.83 a barrel. Both benchmarks hit their lowest price levels since early January last week. The Tank Tiger has the popcorn on the stove, waiting for the return of contango.
