Bad Doggie Economics: When Market Signals Get Messy
Once upon a time there was a German Shepherd named Spridle. He was an obedient canine, who always aimed to please his master. That is of course, when the master was attentive. Occasionally when the master was less than observant, Spridle would sneak off and go on a neighborhood patrol of garbage cans. Spridle would make a living out of digging in the garbage. Of course he left behind a convoluted mess and despite his protest of innocence, he could never shake the smell of what he did when he got home. Receiving pointed barbs of “Who did that?” and “Bad Doggie” left Spridle turned up on his back with his legs pointed skyward in a faux guilt/shame pose that would only last as long as master continued his tirade. When master was done, Spridle went happily on his way. So goes our global economy these days.
Take a look at last week’s headlines, we observed a mix of good news for the general economy, but also some significant headwinds for specific sectors. The S&P hitting 6,000 is great for portfolios, but what does it mean? Is it a forward looking crystal ball, or is it a confluence of historical hard data? The renewed dialogue between the U.S. and China is a positive sign for global trade flows. Any de-escalation of tensions generally supports demand for energy and petrochemicals, which in turn can tighten storage capacity for chemicals but may also prolong the oil backwardation. Yesterday’s talks in London will get spun every which way but loose – but real progress there could shift the needle on future tank storage demand.
Inaction by the Fed on last week’s labor market news has some folks coming down hard on Chairman Powell. While the nonfarm payrolls beat expectations, the report also mentioned slower private hiring. A strong labor market generally implies robust energy consumption. However, if that strength isn’t sustained or if there are pockets of weakness, it could signal caution for industrial demand and thus, the return of Captain Contango. I’m so confused! What to do? What to do? There’s garbage all over the street. What a mess.
US Midcontinent diesel inventories hitting a 90-month low is a direct result of peak agricultural demand for the corn crop. Tanks in the Midcon may be ripe for new customers. Now’s the time to be talking to us. Looking for long-term crude or refined product storage in the Gulf Coast? We have various options available, from small parcels to larger dedicated tanks. Remember, Unlock Value: Sublease Your Surplus Capacity! Don’t let idle tanks sit empty. Let The Tank Tiger connect you with customers actively seeking short-term or flexible storage solutions, using our dedicated online platform. Maximize your asset utilization! In today’s complex market, making informed decisions about your storage assets, or storage leases, is more crucial than ever. Whether you’re looking for capacity, trying to offload surplus, or simply need an expert opinion on market trends using our proprietary data, The Tank Tiger is here to help. Or, you can always hang out with Spridle.
