3 Reasons Why Oil Stocks Are a Screaming Buy Today

Oil stocks are a screaming buy today. 

You don’t need a crystal ball to see it, because even the bears realize they’re about to take a backseat to the bullish momentum building behind crude prices. At this point, higher oil prices are an inevitability, and there’s no amount of demand delusions from the IEA that’ll reverse this course. 

If you’ve followed the oil sector for any amount of time, then you know that there are a few catalysts out there that can cause prices to surge higher. 

Let me explain what just happened…

3 Reasons Why Oil Stocks Are a Buy Today

Look, my readers and I know that nothing — and I mean NOTHING — can cause oil prices to spike better than a little geopolitical volatility. 

This is the bread and butter of global oil risk; the wild card in oil’s deck that rears its head ever so often, and gets more dangerous with time.

A few days ago, we talked about the consequences of Venezuela’s 2024 election. More importantly, what happens next is going to put a premium on crude prices. You see, it turns out that Venezuelans aren’t going to take Maduro’s election fraud sitting down this time. 

Now, one of two paths must be taken — either a peaceful transition from the Maduro regime to Edmundo González Urrutia or a bloody suppression of protests and opposition leaders. 

I have to ask, “What in Maduro’s first two terms would make you think this will end peacefully — especially after he threatened bloodbath if he lost?”

But conviction comes with consequences…

If Maduro refuses to give up power, then oil sanctions will be back on the table; they HAVE to be, right? Remember, the singular condition that President Biden gave Maduro when he eased sanctions was for fair elections to take place. 

Well, so much for that. 

What’s interesting is that this alone isn’t enough to spike oil prices overnight, and it may take a little time for Venezuela’s oil output to crash again. As I mentioned before, the country’s state-run company PDVSA has managed to boost oil production to nearly a million barrels per day. 

More importantly, losing that supply on the global market might not even occur since OPEC can just adjust members’ output to compensate. Remember, the Saudis alone have voluntarily cut production by that much — on top of its normal cut. 

No, it wasn’t solely the chaos in Venezuela that caused WTI prices to spike 5% yesterday.

For that, we can glance over at the Middle East. 

When news hit the wire that Israel successfully killed Hamas’ political chief Ismail Haniyeh, that was enough to put the fear of war into oil traders. Just as important as WHO was killed was WHERE it took place — the capital of Iran, Tehran. 

If you want a fast-track to higher oil prices, at the top of the geopolitical risk is when Iranian officials vow revenge against Israel.

The pinnacle of geopolitical fear in the Middle East since October 7, 2023 has been the conflict spreading outside of Gaza. 

That fear is only now starting to materialize. 

But I did say there were three reasons why oil stocks are a screaming buy right now, and topping off this trifecta is my original bullish case for crude — the demand disconnect taking place as you read this. 

If geopolitics is causing the spike in oil, then the underlying supply/demand fundamentals that are getting tighter down the second half of 2024 will help higher oil prices keep its footing. 

It would be foolish for any investor to ignore this bullish momentum in the oil sector.  

I recommend starting right here.

Until next time,

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.