UPS warned... for the Christmas season... so they make up excuses and say its mismanaged.... to many temps..... their fuel cost... largest cost other than people was more than 25% lower and they missed... 25% saving on fuel should have more than offset temp hires who get no benefits
That says there were not enough packages
So that tells me that lower fuel failed to stimulate the economy in 2 ways... retail spending and transportation costs
" consumer confidence is surging right now"
That's what they were telling us in Nov and December yet retail sales were down in Dec... Christmas.... when oil was at its lowest
So no... Im not a believer that energy can go down and it be the sole driver an improved economy
Obviously there are far more things at work such as decline in global demand.... which could indicate global recession (need I say Europe... China... Russia) will have a far greater contagion affect on the US economy than US housewives spending extra cash saved at the pump at Bed Bath and Beyond or some clothing retailer..... on ever cheaper Chinese made goods
I will also ask in return why utilities have been raising rates in the current environment.... Where is the industrial savings when the cost of electric and Nat Gas is actually rising to end users
National Grid is raising rates in the NE when they are buying gas from the Marcellus for ~$1 BTU... and NO media is even covering this contradiction
PSE&G is raising rates while it whines about the cost of fuel to produce electric
Cushing inventory is growing at close to 10% a week and is currently at 37m bbl... if todays rpt grows at the same trend we will be at 40+m.... while not record territory its filling fast.... certainly not empting out
Oil stores in this country are at 80 yr highs... that does not bode well for the producers... especially when our great ally the Saudi's continue to sell Brent at a $4+ discount (at the port so that's after transportation) that undercuts WTI.... why would a refiner pay more for WTI when it costs them more to refine?
Its horrible policy that allows this to continue... like I said its economic warfare.... and the thing that bothers me most is the fiasco started due to sanctions on Russia and Iran.... those countries will last longer than the smaller E&Ps... and that's gonna have an affect on mid stream pipes...
Further evidence is what happened to ETP since it announced its merger with Regency... and what should be of great concern is Regency and ETP have a nice project in West Texas where the cost to produce is cheap... yet a driver of the deal is worries over the cost of production at E&Ps reducing flow
Now may be a great time to merge in assets... but I believe current policy will drive the energy sector including pipelines lower
and not a fan of government... especially foreign policy having such a profound affect on domestic energy production