Summer Drama: Inflation & OPEC clash
Guess what. Summer is almost over. This could be the most expensive back-to-school shopping season ever, the National Retail Federation projects. What are you going to do if your kid has absolutely nothing to wear. Drama drama drama. Speaking of drama, inflation escalated to its highest level in decades. But, like Led Zeppelin said:
You need cooling
Baby I’m not fooling
I’m gonna send ya
Back to schooling
Since its summer peak, inflation is rapidly becoming a non story. However, if OPEC + has their way, they can drive inflation back into the conversation if they are able to hold the rope and continue to constrain oil supply. Saudi Arabia reinforced its voluntary production cut to the end of September, and indicated that this could evergeen. Crude prices added roughly $10 through July to top $80 and WTI is up 1% for August, on pace for its third straight monthly gain. Since the US job market remains tight, workers still have quatloos to buy expensive back to school stuff to keep the inflation fire smoldering. Wages for workers rose more in July than expected. Thursday’s CPI numbers could be heavy enough to teeter the seesaw one way or another. Forecasts are for a 3.3% CPI increase year over year. Of course, higher oil prices and sustained inflation will be bad politically for US incumbents. The US Presidents always get re-elected when the economy is not in a recession within 2 years of election day– always. But they don’t hit their weight during a recession, winning only about 15% of the time. Don’t be surprised if we see Iran and Venezuela photobombing the OPEC+ selfie. Drama drama drama. Marcia Marcia Marcia.
Last week was a busy one for The Tank Tiger. We fielded storage inquiries for tallow, renewables, asphalt extender, LPG’s, Distillates, UCO, Gasoline, Bio Feedstock and various chemicals. We also listed a terminal in Florida looking for an operating partner or an outright buyer. Did you know that if you issue a storage inquiry through The Tank Tiger, you get this amazing stress reliever to showcase on your desk? If you’re looking for storage, our service is free. What are you waiting for?
