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Forecast: There Are Big Changes (and Big Profits) Coming to the Oil Sector in 2017


Late in the summer of 2016, I predicted that crude oil prices would be in the mid-$50s by the end of 2016, and the low $60s by the first quarter of 2017.

And at the start of the week of Dec. 12, 2016, West Texas Intermediate sits at just under $54. Frankly, I'm not seeing anything in the market that would force me to revise my forecast right now. 

But make no mistake: There is a change underway right now that will only accelerate in 2017. The "rising tide" of crude prices will not "lift all boats" equally. I'm predicting that investors will see some big shifts in the oil markets and where their profits come from.

You see, the source of global oil demand itself is refocusing, and that's where we'll see the biggest changes.

Some players will lose out: The traditional high-dividend "supermajors" - BP, Chevron, ExxonMobil, Royal Dutch Shell, Total SA, Eni, and ConocoPhillips - will see their long-term viability and short-term profitability severely challenged.

But nimble, globally oriented oil investors could see some of their biggest profits yet in 2017 from the places I'm about to show you...

For U.S. Oil, Alaska Just Became the Next North Dakota

For oil, Alaska just became the next North Dakota of oil discoveries.

A tiny, private company just made a massive discovery near the Arctic Circle.

The discovery is so significant, it could make Alaska the new oil capital of the U.S...

What the Algiers Deal Means for Crude Oil Prices

Crude oil prices

What a difference a few days can make for oil.

Earlier last week, oil was drifting down under the weight of doubts about the rumored OPEC oil deal. Then, on Wednesday, several OPEC oil ministers announced that they'd agreed to cap production.

Almost instantly, U.S. oil prices shot up 6%. But come Thursday, the enthusiasm had waned, as traders actually looked into OPEC's oil deal... and didn't like what they saw.

Now, as with any supposed deal between countries that are at each other's throats, the devil will be in the details. That's certainly the case here.

But analysts' reports calling OPEC's announcement a complete failure are wide off the mark.

So today, I'm going to walk you through the details of this plan...

And show you exactly why this deal will be a game-changer for oil...

Here Are All of the 2016 Oil Bankruptcies… So Far [LIST]

gas company bankruptcies

The bout of 2016 oil bankruptcies is not about to disappear soon.

There is, however, some good news about the flailing industry... depending on how you look at it...

I'm Not Worried About This Round of Oil Price Volatility

oil stocks to buy now

Kent's oil price prediction of mid-$50s by the end of this year is holding firm. Two new signals are supporting the gradual uptrend.

With volatility on the rise and short runners heading for the door, now is your chance to get in for some good profits...

How Florida’s Algae Blooms are About to Turn into an Energy Boom

When someone mentions algae, one of the first things people think of is Florida's toxic buildup of green slime. It began in Lake Okeechobee, the "hole" in the center of any map of the state. But it didn't end there… When huge rainfall threatened to breach an aging 80-year old earthen dam in 2013, the […]

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Price of Crude Today Oil Surges Above $46 on OPEC Report

price of crude oil

The price of crude oil is surging above $46 today thanks to a declining dollar and new OPEC report.

But there are two other reasons why prices will keep shooting higher this year.

Here are our Brent and WTI crude oil price targets for 2016...

What the Latest Oil Balance "Mantra" Is Really About

oil prices

Oil pundits have been hailing the emergence of an oil balance, and to be sure, one is quickly taking shape.

But despite what the media's claiming, it's not about supply. Here's where the balance is really being struck...

The Fed Is Set to Slaughter Debt-Laden U.S. Oil Producers

crude oil price

The market is moving up nicely today, with the S&P 500 running on two-month highs toward 2,100. But investors are playing a special kind of Whack-a-Mole, only with the U.S. Federal Reserve Board instead of those cute little plastic guys you see on the boardwalk.

Of course the preeminent question is whether the Fed will raise interest rates soon. But either way, the U.S. energy sector, already under pressure, is about to feel a whole lot more of it - no matter when the Fed raises rates, or how many times it raises them in 2016.

In fact, no matter how you slice it, a wide swath of American oil and natural gas producers are going to catch it in the neck; bankruptcies, mergers and acquisitions, and of course asset sales (one step ahead of the sheriff) will be the order of the day. 

This much chaos and consolidation means one thing: There are big profit opportunities for those who tread carefully...

China Just Took a Giant Step in Its Takeover of Global Oil Markets

oil markets

The energy news headlines these days are all about the failure of the Doha summit and the upcoming June OPEC meeting in the face of a historic, intractable global supply glut.

But there's a takeover underway that's flying totally beneath the radar...

In fact, the early stages are already complete - it started right in the United States' geopolitical "backyard," in the OPEC member-state of Ecuador.

The power player moving in is of course none other than China. But it's certainly not going to limit itself to Ecuador.

Here's what you need to know about this development...

How ISIS Makes Money Will Surprise You…

how isis makes money

How ISIS makes money is often presented as a simple answer: Oil.

In fact, the U.S. Treasury Department believes ISIS makes up to $500 million a year selling oil.

You see, what most people don't know is that oil only accounts for a quarter of the terrorist group's income. But there's actually a much more sinister way ISIS funds terrorism that we discovered through a leaked document...

The Oil Sector's "Other Shoe" Just Dropped

oil sector

The "other shoe" is dropping for the oil sector, and it's going to affect each and every one of us.

This ripple effect will extend to much more than just oil and gas.

And it looms as an ongoing concern, one that is likely to have a longer-lasting effect than the price of oil itself - unless, that is, there is a reversal of trajectory.

How to Profit from the "Great Oil Turnaround" of 2016


We've been able to make energy profits during the oil bear because I'm tracking opportunities outside of petroleum. One of my favorite alternative "oil-killer" energy plays, for instance, is up 45% since I recommended it. The global energy balance is simply shifting to favor these alternative energy sources.

But oil is still vitally important, and I'm pleased to report that it's going to be a bigger source of profits moving forward...

You see, towards the end of February, we saw signs that oil is about to turn the corner, with oil prices shooting up 8.5% in a single week.

While they later fell a bit, showing that volatility is still the name of the game, make no mistake...

A sustained rise in oil prices is coming.

To prepare for this trend, I've put together a plan for us to profit.

I'm tracking several companies across four different categories, but this one strategy will get you perfectly positioned to capture the biggest possible profits from the coming end of oil's decline.

In a moment, you'll see exactly how this plan will work.

But first, here's what's changed to allow for this turnaround in oil prices...

The Truth About the Big Oil Production Freeze

oil prices

With word swirling about Russia and Saudi Arabia agreeing to freeze oil production, the talking heads are up in arms about whether it will make any difference or not.

On the table is an accord to keep production at January levels, with most of OPEC probably following Saudi Arabia's lead.

In the short term, getting Iran on board is key. Today, meetings took place with Russia, Saudi Arabia, Qatar, and Venezuela on one side of the table, and Iran on the other.

The official goal was to get Iran on board with the production freeze. But my contacts are telling me a different story...

How to Cash In (Big) on Russia's Unique Oil Problems

Russia oil

The Russian financial situation is heading south again - and fast.

Crude oil prices of less than $30 a barrel are bad enough, but Russia can't even fetch that. The country's "sour" high-sulfur export blend, Urals Export Blend Crude (UEBC), is trading at $26 a barrel - or less. Natural gas is faring even worse.

The fact is, Russia is dependent on oil and natural gas exports to buoy its unwieldy central budget. So the world's largest country is in trouble, and serious trouble if it can't find a way out.

There is a way out, though there's only one option, and it's far from certain whether Putin can make it happen.

What is certain is that there's a juicy profit opportunity for us. Let me show you...