According to our Dr. Kent Moors, crude oil prices have much further to climb.
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Practically overnight, oil has fallen 8% from a nearly four-year high.
And we don't expect it to recover any time soon.
Our Bill Patalon recently sat down with our oil and energy expert, Dr. Kent Moors, to talk about how to be an oil "wildcatter" in your own right - and a record-breaking opportunity he's tracking.
Oil rose yesterday to its highest since May 2015 - thanks to the unrest in Iran.
Iran's increasing volatility both at home and abroad will continue to affect oil prices.
Last Thursday, I filled my Oil & Energy Investor readers in on the best energy investing strategy to use in a world wracked by rising tensions on the Korean Peninsula, the Persian Gulf, and of course, Venezuela.
Now, energy is still making people fortunes. That hasn't changed, and it's not likely to in the future, either.
But in an increasingly anxious world, investors will see bigger, more consistent profits when they find a way to bridge two critical sectors: defense and energy.
In fact, in my monthly, paid Energy Advantage and weekly Energy Inner Circle investment research services, I'm adding significantly more "weight" in the stocks that do this very bridging.
Normally, I'd keep these plays close to the vest; after all, it's only fair. We've already enjoyed double-digit gains in these companies, and the upside potential is still enormous.
More importantly, the geopolitical situation is changing so quickly, and the impacts are so profound, that I want to make sure everyone is holding these three stocks at a minimum.
We will talk about energy markets another time. I have something else I need to share with you.
Today, we honor those who have made the supreme sacrifice to allow the rest of us to live the kind of lives we do.
For me, personally, this is a very tough time of the year. And it is all coming back to me this morning.
It's prompted me to think about my time on the front lines of the Cold War and its aftermath, while walking in what these days feel like another guy's shoes.
I was then playing "The Great Game" of geopolitical conflict as a profession; a game with some very high stakes. A game that helped make me who I am.
Thinking about those days brought back the faces of people who helped shape me. I owe them my life. For a few, that debt is a very literal one.
And that, you see, is what makes this time of year so difficult for me. Because this week, May 31, marks a bittersweet anniversary.
The oil sector is buzzing with rumors at the moment, and, as usual, the financial news channels have absolutely no idea how to handle it.
One day, they'll be talking about OPEC abandoning its oil deal and letting oil prices fall.
The next, they'll be all over a drop in stored U.S. oil driving prices up.
You'd be forgiven for not knowing what on Earth is going on and thinking you should just stay out of the energy market altogether.
But nothing could be further from the truth. In fact, now is a great time to get in. You see, there's a reason why oil prices nosedived so fast recently...
And why they're recovering at record speed.
The OPEC production cut is up in the air ahead of the OPEC meeting this week.
The oil cartel will meet Thursday, May 25, in Vienna, and oil prices could rise 7% by mid-June if OPEC renews its oil production cut agreement.
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.
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.
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...
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.