The dwindling demand for oil-based lubricants, reaching its lowest point in over four decades, is a stark indicator of the challenges facing the manufacturing sector in the United States. This decline in demand is far from indicative of a ‘soft landing,’ and while circumstances may differ this time, historical data presents a concerning pattern.
Over the past half-century, each instance of the unemployment rate surpassing its 24-month moving average has marked the onset of significant labor market deterioration. Furthermore, the crude oil market’s dip below its 200-day moving average for the first time since July is a signal of economic turbulence.
Adding to these concerns, a Bloomberg report highlights that Americans outside the wealthiest 20% of the country have exhausted their extra savings and now possess less cash on hand than when the pandemic initially struck. These facts collectively paint a picture of economic challenges that cannot be ignored, and they emphasize the urgency of addressing the issues affecting labor markets, consumer finances, and economic stability.
Oil-based lubricants are seeing the lowest levels of demand in more than 40 years as manufacturing slows in the US
Not exactly a sign of a 'soft landing' pic.twitter.com/61oo62IaoB
— Markets & Mayhem (@Mayhem4Markets) November 8, 2023
Maybe this time is different, but in the past half-century:
⁰Every time the unemployment rate has crossed above its 24-month moving average, it marked the beginning of a significant deterioration in labor markets. pic.twitter.com/Vxuj8eoPOT— Otavio (Tavi) Costa (@TaviCosta) November 8, 2023
BREAKING 🚨: Crude Oil
Crude Oil falls below its 200D moving average for the first time since July pic.twitter.com/u1MkAn4plk
— Barchart (@Barchart) November 8, 2023
Americans outside the wealthiest 20% of the country have run out of extra savings and now have less cash on hand than they did when the pandemic began, per Bloomberg.
Read more: t.co/FxQV54W2Cb
— unusual_whales (@unusual_whales) November 8, 2023