“Is it safe to look yet?” a concerned colleague asked me recently.
It’s a question that has plagued anyone with a dime invested in the energy sector right now, especially after we watched crude prices fall 52% during the latter half of 2014.
That bearish feeling is further exacerbated today as oil prices slid below $50 per barrel. As I type this, a barrel of West Texas Intermediate trades for $48.96 per barrel. We haven’t seen crude dip this low since 2009.
Had you told me a year ago that we would be starting 2015 with oil at this level, I would’ve laughed. As it turns out, however, Saudi Arabia is more than willing to sacrifice its fellow OPEC brothers for the sake of market share.
But one thing is for certain: The Saudis’ relentless price war is creating an unprecedented buying opportunity right now for one specific group of investors…
Will you be one of them?
The Price War Rages On
The war rages on… but to what effect?
If Saudi Arabia’s goal was to cripple the U.S. shale boom, then consider this price war to be a failure. In spite of prices plummeting to six-year lows, U.S. oil production is still projected to grow by roughly 700,000 barrels per day this year.
For anyone counting, that’s approximately 9.3 million barrels per day — the most we’ve been able to extract in more than 42 years!
So far, King Abdullah isn’t blinking.
The question now is how long can the Saudis’ “firm will” last? After all, OPEC’s largest producer already has to stomach a nearly $40 billion deficit for this year’s budget.
But is there really a bottom in sight for oil prices?
Power Bottoms
We could actually be staring at the bottom in oil prices. Truth is, too many pundits want you to think that demand is in free fall. That simply isn’t the case today, and as I’ve mentioned to readers before, oil consumption in the U.S. has been relatively flat since the 1970s:
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Globally, the supply/demand picture isn’t as unbalanced as most believe:
Then again, if you think the world will suddenly rid itself of its fossil fuel addiction, think again.
Nearly 86% of the world’s energy is derived from oil, natural gas, and coal — that isn’t going to change anytime soon.
And if you have been holding back, waiting for the right time to strike, then now is the time to go long on oil.
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Go Long Now on the Right Oil Investments
I once had a colleague tell me, “When the world is upside down, buy!”
I reiterated that sentiment nearly six years ago to the day.
The difference today is that we aren’t heading into a recession but out of it.
This time around, however, picking the right investment isn’t as simple as blindly throwing a dart against the wall. Below, you can see the kind of run oil prices went on after bottoming in January of 2009:
Click Chart to Enlarge
You see, I believe there’s an easier way to navigate today’s volatility. It’s a select group of oil investments that — despite the downward pressure on oil prices — are still offering lucrative returns for individual investors like us.
Every single one is trading at a heavy discount, which is also not to mention the attractive yields these investments are paying out on a regular basis.
I’ll give you the full details behind these new opportunities in less than 48 hours.
Stay tuned.
Until next time,
Keith Kohl
Check us out on YouTube!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.
