Buy Oil Now, Reap the Windfall Later

Someone is lying to us. 

Now, I’m not looking to start a row, but investors who have been paying closer attention to the EIA petroleum reports lately are scratching their heads a bit this summer.

A few weeks back, we were forced to take the EIA’s gasoline demand numbers with a grain of salt. Not only have U.S. inventories of gasoline been well under the five-year average range since the spring, but they are still currently about 6% under the average. 

Again, it’s hard to imagine that gasoline demand this summer is lower than it has been throughout the COVID lockdowns. 

In fact, the EIA’s latest report showed that demand last week averaged around 8.5 million barrels per day, which comes in at nearly 200,000 barrels per day LESS than when there were hardly any cars on the roads and the U.S. highways were void of the daily bumper-to-bumper traffic that reared its ugly head this summer. 

The blame game in Washington has gotten so bad that when Putin no longer worked as a scapegoat via his “Putin Gas Tax” (which then turned into “Putin’s Inflation War”), it wasn’t long before the country’s largest oil refiners were forced to rebuke the Biden administration… and what they said was quite revealing.

Not only had they not seen signs of demand destruction at the time but rather the opposite: Demand was strong.

So who do you believe?

Fortunately, you don’t need a lie detector for this one… and the answer is leading to another windfall for the right oil stocks. 

Buy Oil Now, Reap the Oil Windfall Later

There have been numerous times over the last two years that oil was a screaming buy.

At the end of 2021, it was the perfect time to take advantage of the brutal sell-off in November and yes, buy oil immediately.

But as you know, not all oil investments were created equal. 

Last winter, we saw the tight supply/demand picture and knew that crude prices were going to explode higher later in the summer. 

My readers know better than anyone just how true that turned out to be. 

Back then, even the best oil stocks were beaten to a pulp from the panic that gripped the investment herd. 

And it’s those knee-jerk reactions that become more profitable than you could imagine. 

Unfortunately, there’s a drawback in all of this good news. 

The Labor Day weekend we’re all about to enjoy marks the end of the summer driving season, which is typically the peak for oil demand in the United States. 

Thing is, there are far more bullish catalysts lining up to give us one helluva run into 2023, and I think the most interesting one is this: What happens when President Biden’s SPR releases stop at the end of October?

You see, I think the White House has already gotten the sound-bites it wanted for the midterm election cycle.

How many times has the White House noted that gas prices have fallen for XX consecutive days?

U.S. oil output has all but flatlined right now, and we can’t possibly expect U.S. operators to have any incentive to boost output. 

In other words, don’t expect a sudden blast of supply to fill our inventories anytime soon. Of course, this is also not to mention the fact that OPEC has recently come out saying a production cut is on the table if crude prices fall further. 

Considering that countries like Saudi Arabia got to feel what it was like hauling in record amounts of cash again, it’s hard to see these OPEC members NOT trying to manipulate the market for higher returns this winter. 

If we’re not going to see a wild surge in oil production, just where do you think individual investors like us should be looking for that oil windfall?

That’s the easy part. 

Throughout the year, there’s been one class of oil stocks that has seen its profits surge to all-time highs. 

With oil selling off today, we’re finally seeing a huge window of opportunity.

If you’re still wondering where to start, I have some good news for you. 

You see, my readers and I have been timing these oil windfalls for more than a decade, and we’ve locked on to one small group of oil stocks that are returning incredibly strong margins despite the sell-off in oil prices. 

It’s why we’ve targeted four must-buy oil stocks in that sector that are paying off in spades for early investors.

You need to see this one for yourself.

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.