Labor Day Reflections: Celebrating Workers, Oil Markets, and Securing Storage with The Tank Tiger
Yesterday we celebrated the summer/fall tweener holiday which is Labor Day. We hope everyone enjoyed their time off. It is a day to honor and celebrate the American labor movement and the contributions of workers to the country’s strength, prosperity, and well-being. The holiday originated in the late 19th century, as labor activists pushed for a federal holiday to recognize the contributions of workers and a celebration of their achievements. In essence, Labor Day is a time to appreciate the hard work and dedication of American workers and to recognize the importance of the labor movement in shaping the nation. Indeed, each of us should be proud of our hard work and grateful for the fruits of our labors. Labor Day is an opportunity to reflect on the fact that lighting someone else’s candle won’t make yours any less bright. Certainly, it’s not necessary to blow out someone else’s candle for your light to shine. We get by with a little help from our friends. For many, Labor Day marks the unofficial end of summer, often celebrated with picnics, barbecues, and other outdoor activities. Choose kindness, embrace the gratitude, and hold off on the pumpkin spice for now…there’s still a few weeks of summer remaining.
Speaking of labor, things come to a head on Friday, which will see the release of the August nonfarm payrolls report. The labor market will be firmly in the spotlight, with the latest Job Openings and Labor Turnover Survey (JOLTS) scheduled for tomorrow. U.S. consumer spending increased solidly in July, suggesting the economy remained on firmer ground early in the third quarter. With prices rising only moderately last month, it seems like the quarter point rate cut is the path to be taken this month by the Fed.
Trying as hard as they might, OPEC+ keeps flailing to keep oil off of the market. However, Brazil, Canada, Guyana and the United States are all increasing their oil output. Sometimes the cartel shifts their strategy and opts to slam on the brakes, reverse course and play a game of chicken to recover its market share by increasing its production. When that happens, the bottom can fall out on oil prices and contango can make its triumphant return. . Prices are now basically the same as they were at the beginning of the year. Cue up the music. Goldman Sachs, lowered its forecast range for Brent crude by $5 per barrel, setting it now at $70 to $85. The oil storage terminals will be tossing out their rose petals in anticipation. Meanwhile, the coveted storage locations in NYH, Houston and, of course, the US West Coast have already been fully contracted, So if you think you might be late to the party, let The Tank Tiger assist you in securing the tanks that you might not know about yet. For example, check out the terminal we’re now showing in the hard working county of Luzerne, PA. There are available tanks for a host of commodities such as renewables and distillates. There are three tanks available – ranging in size from 20,000 to 30,000 barrels. Let us know if you want to learn more. We get by with a little help from our friends.
