Turns out the markets reacted very little to what some are calling a “shock” in the oil markets. Crude oil inventories climbed 3.3 million barrels last week and yet some people were surprised. At the very same time, we saw demand for petroleum products drop significantly, while the James Comey testimony turned out to be another non-event for the markets.
First of all, I find it amazing that oil inventories could be a shock to anyone tracking or analyzing the energy sector. Everything over the past two years has been based on inventories being high. This is the reason for the dip in oil prices; the cause is lower demand.
With that in mind, I would expect that we would concentrate on the cause of high inventories, not necessarily the effect.
Frittering Time Away
Thankfully, we are starting to see demand picking up a bit as the Asian economy seems to be growing in exports and manufacturing.
However, to concentrate on demand will require a legislative body here in America getting some work done. It will require doing what is necessary to get America back on track for the good of its people.
That shouldn’t be too much to ask when the House of Representatives and the Senate will only work together for about 35 days between now and Sept. 30. I suspect it’s even harder to believe that someone in “leadership” is not demanding work to be done and legislation passed for the sake of the American people, who have a right to be upset about congressional representatives and their frequent vacations.
The problem in the oil sector is global demand, and the problem can start to be resolved by PASSING tax reform. Tax reform will not impact the oil sector directly, but also corporate America, future growth, and its ability to get on track and stay on track.
Necessity of Reform
Getting back on track means expansion of America’s economy, manufacturing and workforce employment—and, yes, even expansion in global manufacturing. All will be somewhat dependent on what is done with tax reform.
The main legislative body in the U.S. has yet to figure out that someday—in the very near future—they will be judged primarily on the health of the economy, jobs, wages and opportunities for the average American worker to stay employed and get ahead.
All the other political garbage they seem to be mired in right now won’t mean a thing when the same Americans who elected Donald Trump head to the voting booth again. There, they will judge the politicians who are trying desperately to make a case that they care about America and the American people.
Oil is just one sector that is suffering from the effects caused by the sputtering interactions of politicians. The real estate market will certainly be another, along with the construction business.
These industries will be impacted by the lack of infrastructure spending, and so will the health care and financial sectors, as opportunities will continue to diminish if tax reform isn’t passed very soon.
Calculated Risk
A large percentage of those sitting on Capitol Hill are taking a calculated risk that the American voter will forget all the current political posturing. Politicians have never been very good at taking calculated risks, and they’re certainly not taking a good one right now.
Americans will not forget the inaction of another “do nothing” Congress, which continues to hinder their ability to have discretionary income and feel comfortable with their jobs. Once again, voters are watching Congress rob them of opportunities to prosper and feel good about the nation’s direction and how it will impact their careers, as well as future generations.
Oh, it’s understandable that the government and the legislators on Capitol Hill figured they can place the blame on corporate America, the banking sector, Wall Street, Donald Trump and, of course, the opposing party.
Not so fast. I realize most politicians in Washington live in a bubble that keeps them from understanding basic things—like putting gas in the car, having money for vacations and getting an increase in pay.
Yet they also understand that they’ve always been able to go back into their districts two months before an election, speaking like they’re carrying a big stick. They place blame on everybody else to get votes and then return to their royal elite status in the noble profession of being a politician.
Carrying Small Sticks
Newsflash: Those assumptions involve a very different American voter than now exists. In case these politicians haven’t noticed from the previous election, the American voter is smarter than they think. Voters have figured out that the stick many politicians carry is so small, they can’t even poke someone in the eye with it.
It’s nothing more than the same old rhetoric, which will not cut it with this “New American Voter.” For that, you can blame President Trump. Let’s get something passed!
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