Shifting Tide of Oil Markets: Embracing Change and Opportunity
Depending on where in the United States you live and whom you work for, yesterday might have been a day off with pay, another holiday entirely, or no different from any other Monday. Officially known as Columbus Day, the second Monday in October, is one of the most inconsistently celebrated U.S. holidays. It’s one of 11 official federal holidays, which means federal workers get a paid day off and there’s no mail delivery. Because federal offices were closed, most banks and the bond markets that trade in U.S. government debt were also closed. The stock markets and NYMEX, however, remained open and, of course, how can you forget the Columbus Day sales as retailers and other businesses stayed open. More recently, Native American groups and other critics have advocated for changing the holiday to something else, citing Columbus’ own mistreatment of natives and his legacy of European settlement. Several states and dozens of cities have recognized Indigenous Peoples’ Day. Perhaps because of this, Columbus Day seems to be fading as a widely observed holiday, under the auspices that Christopher Columbus isn’t an appropriate person to celebrate. No matter what, the Nina, Pinta and Santa Maria did indeed sail the ocean blue in 1492 and Mr. Columbus did indeed step out of his comfort zone with fire in his belly and a desire to bring back rich cargoes of silks and spices. No less heroic were the Indigenous People who bravely prospered in America with simple means in sometimes harsh environments, embracing the spirituality and gratitude that each day brings. It’s not a zero sum game and perhaps it’s better suited to celebrate the best of both, rather than dwelling on the negatives of either. Fast forward to today, even though some of us wear different jerseys, we’re all on the same team. Seeing the good and embracing gratitude bestows light everywhere. We hope you enjoyed your time off.
U.S. crude oil on Friday posted its second weekly gain in a row as Israel reportedly prepares to retaliate against Iran. This short term bullish sentiment still seems to be tethered down with a longer term outlook that 2025 oil supplies will be plentiful and that the return of the contango is now a matter of when versus if. The Tank Tiger has certainly seen demand for storage firm up, something very atypical given the backwardation structure that has persisted. Perhaps, like Columbus, it’s time to get out of your comfort zone. Don’t be the last one to ask for a tank. The Tank Tiger is here to show you what storage is still available. Remember what Ricky Bobby said, “If you’re not first, you’re last.” Oil prices finished up 1% for the week and have increased 10% since Iran’s missile attack on Israel. An attack on Iran’s export facilities could certainly propel oil prices higher. Alternatively, a crippling strike on their refineries would negatively impact Iran but wouldn’t have the same global effect on oil prices. West Texas Intermediate crude ended the week at $75.56 per barrel. Meanwhile, Wall Street on Friday posted a five-week win streak for the first time since May. Sail on!
