OPEC's Clock is Running Out

Keep something in mind this Thursday when you’re enjoying the day off…

If the only weapon OPEC has in today’s modern oil war is the ability to manipulate supply, you can bet it’s going to use it.

That’s right — Thanksgiving officially marks the opening of OPEC’s next meeting.

Typically, members meet twice per year, or more frequently if circumstances require it. Apparently, the steep, 27% decline in Brent crude prices over the past five months wasn’t enough to warrant the emergency session.

Now, pundits are out in full force, with experts telling us that by Monday, a barrel of oil will cost between $40 and $150.

Well, at least we know somebody will be right next week.

But I know one thing is for certain…

OPEC’s decision is going to make a certain group of U.S. investors extremely wealthy.

To Cut or Not to Cut?

I call it a global game of chicken.

At least, that’s the way I framed it last month when I said this fight is going to come down to which side will blink first.

At first glance, the decision to cut seems like an easy one. Significantly cutting production would boost oil prices, directly leading to higher profits for OPEC members.

But think about this…

The mighty OPEC has been fighting tooth and nail to retain control of global oil supply.

Not only has U.S. domestic output burgeoned since 2008, but let’s also not forget that Russia was extracting approximately 10.6 million barrels per day at the outset of 2014.

If that doesn’t sound threatening to OPEC’s power struggle, remember that Russia is also planning to triple its crude exports to China over the next decade. That’s a serious problem for OPEC’s largest producer, considering the fact that more Saudi oil is shipped to China than the United States.

Here in the U.S., meanwhile, domestic production topped 9 million barrels per day in the second week of November.

The last time it was this high was in 1986, when the New York Mets won the World Series — 28 years ago!

So like I said, the decision to cut production seems like an easy one. If they don’t, however, it’s likely we’ll soon see crude oil hitting a new bottom. It’s one of the few ways the Saudis can force U.S. drillers to slow down.

And now that crude is firmly below $80 per barrel, is it really surprising to see the doom-and-gloomers out in full force?

Even though Harold Hamm recently doubled down on his bet that oil prices will increase by scrapping Continental Resources’ hedges, Bloomberg recently reported that as many as 19 shale regions in the United States are unprofitable with oil at $75 per barrel.

But are drillers really slowing down?

The latest Baker Hughes rig count showed only a slight decrease in oil rigs last week.

Also keep in mind that there are 187 more oil rigs drilling on U.S. soil now compared to a year ago.

So what can we honestly expect OPEC to do when its members sit down this Thursday?

While most analysts are expecting OPEC to reduce supply by a modest amount, don’t be shocked if we see members cut it by as much as 2 million barrels per day.

Remember, not all of OPEC’s producers can weather low oil prices like Saudi Arabia and Iraq.

And Venezuela is a perfect example of why cheap oil is gone forever. Virtually all of the country’s 270 billion barrels of recoverable reserves are located in the Orinoco Oil Belt, which is of a quality similar to the Athabasca oil sands.

In other words, if OPEC decides to keep its output unchanged, the cartel will effectively be delivering a death sentence to its own members should oil prices fall to $60 per barrel.

And if we’ve learned anything over the years, it’s that one of the best ways to take advantage of OPEC’s looming decision is to capitalize on the oil cartel’s own mistakes.

So will they cut or not?

The real truth is that it doesn’t matter!

The best way to hammer OPEC is to steal those oil profits right from under it. As I mentioned last week, that was precisely why my colleague was sent halfway around the world.

You see, Christian DeHaemer absolutely lives for these kinds of investments. The last time he came back from a similar junket, his readers raked in 247% in a little over 12 months.

Now, he’s uncovered a critical player in a massive oil field that OPEC let slip through its fingers. And a significant cut by OPEC this week could give crude prices a long-overdue rally, boosting the value of these small investment gems.

If you missed this opportunity last week, you can still get in on the ground floor.

The next step is up to you… Simply click here to learn all the details 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.