To Those Who Listened and Bought Oil, You're Welcome

I will never say “I told you so” to the investment herd… and neither should you.

No matter how easy it is to take that road, I’ll tell you from experience that it’s far more satisfying to help an investor out than to watch them flounder. 

When you see a light illuminate behind their eyes when they finally see the bigger picture, knowing that they’re about to walk away from their next trade with a monster winner in their pockets, that’s a feeling I hope you all get to experience one day.

“How do you know?” you ask.

My simple reply is, “Because it’s happening again right now.”

And today, I want you to pay close attention if you didn’t last time.

It’s time to buy oil… again.

Last September, I laid out why my #1 oil stock to buy (at the time) was smack dab in the middle of the most prestigious oil-producing region in the world — the Permian Basin.

I told you then that my favorite oil stock for 2022 was none other than Diamondback Energy (NASDAQ: FANG). 

It was as close to a no-brainer as I’ve ever seen, with the exception of when oil prices turned negative in 2020! 

At the time, WTI spot prices were trading for $65.57 per barrel, and Diamondback was an exception driller that was profitable throughout the entire pandemic. And with global demand making a comeback, the stock was ripe for the picking.

Of course, WTI prices soon went on a rampage and made a run for $90 per barrel in the weeks that followed. 

So when we saw a harsh correction in oil prices last November, I told everyone in our investment community yes, you should buy oil right now.

I remember that morning all too well. I took one look at WTI prices trading for $62.93 per barrel, and I couldn’t help giving you two more oil stocks to add during the correction: Pioneer Natural Resources and Occidental Petroleum. 

Neither of these two U.S. oil giants were unknown. One was the largest producer in the Permian Basin, and the other was the largest landholder.

But what you and I knew that the investment herd apparently didn’t was that oil prices were ready to surge higher in a post-pandemic world — and, more importantly,  the most profitable oil patch in the U.S. would churn out winner after winner for investors. 

And boy, did it ever…

OK, so most of you already know just how well the oil sector has done since last September, but let me show you firsthand the kind of ride we’ve enjoyed since my 2022 Oil Outlook was released last September:

Keep in mind that our bullish sentiment was greatly bolstered by the geopolitical chaos that’s engulfed Ukraine in recent months — it was a premium over the favorable fundamentals.

Of course, those of you who listened, saw that higher oil prices were an inevitability in 2022, and acted on those oil trades I told you about were greatly rewarded.

Take a look for yourself:

Not only would you have doubled your money on Occidental but you’d be holding on to some incredible gains in your portfolio right now. 

But again, nobody wants to gloat.

So if you didn’t listen then, pay close attention right now.

You see, we’re barreling into one hell of a summer for the oil sector. 

Let’s even set aside the premium from the Russian-Ukrainian war too. 

I believe the summer of 2022 will be all about demand. 

In the EIA’s recently published Short-Term Energy Outlook, it highlighted that gasoline prices will be at a seven-year high. Not only will this be the first real COVID-free summer, which will push demand through the roof, but higher economic activity during the summer will push our oil consumption even higher. 

In fact, the last time we had a summer with triple-digit oil prices was 2014, which is exactly where crude prices are right now. 

So is it time to buy oil again?

The answer is a resounding YES!

Except this time, you’ll be the one who can say “I told you so” to the rest of the market. 

Over the next few weeks, we’re going to delve into the drillers, infrastructure, and refiners that are going to make a killing from high oil prices this summer. 

Stay tuned.

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.

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