The Two Oil Stocks I’m Buying On the Next Dip

Patience is a virtue when it comes to investing in the oil sector. 

Over the last few weeks, we’ve been talking about the delusional narrative that the mainstream media has had over the past year, particularly when it came to the supply and demand fundamentals for oil. 

Whether it was the nonstop battle between the eternal bulls and bears over global demand trends in 2024, or the baffling insistence by certain pundits that U.S. oil production — which is already close to all-time highs — will continue to push higher. 

And still, I remind you that we’ve been in the weakest season for oil prices. Despite that fact, WTI prices have been hovering around the $80/bbl mark since late February. 

I know, I know… everyone wants to know when crude oil is going back to over $100 per barrel; they’re the investors that don’t give the sector a second thought until it’s far too late, when the hyperbolic tweets and headlines start popping up everywhere. By then, it’ll be too late. 

Fortunately, we’re going to get our buying opportunity before that happens. 

Typically, spring isn’t a volatile time for oil prices. 

It’s a time when we see U.S. refiners start to conduct maintenance and gear up for the upcoming summer driving season. 

Even though we’ve seen price spikes in the past, they’re usually tied to a very specific event. In 2022, the Russian invasion of Ukraine put a premium on crude prices that lasted into the summer. 

If you failed to recognize the buying opportunity in oil when prices briefly dipped below $70/bbl this past winter, then you may want to pay attention to any weakness ahead.

You know, sometimes those media delusions end up helping you out more than you’d think by opening up a window of opportunity. 

Right now, we’re going to see a lot of scrutiny on China’s demand situation. After all, China has been the leading driver of global demand growth for years. Naturally, we’re told to push aside the fact that U.S. demand is at near record levels, but let’s ignore that fact for the time being. 

So far this year, China’s oil imports are up around 5% compared to the first two months of 2023.

But here’s the catch… that crown is being passed as we speak to another up-and-comer: India. 

The real question is whether you’re in the right position for the next price run-up.

The Two Oil Stocks I’m Buying On the Next Dip

I don’t think any of you should be surprised by the first oil stock I’m buying on the next dip.

With OPEC+ firmly in control of the global supply capacity this year, the game has changed somewhat. And whether the media believes it or not, U.S. output IS NOT going to grow much higher this year. 

What that means is if the market tightens — as I fully expect it to this summer — it’ll be the oil princes in Saudi Arabia who will be in the driver’s seat.

That makes the companies keeping our crude output at record levels so incredibly important, because every barrel of production that we lose will be another bit of leverage for OPEC+. 

And at the risk of sounding like a broken record, the oil game in the United States has changed completely from the early days of the shale boom, when a debt-fueled drilling frenzy pushed production higher. 

That’s what makes oil stocks like this one invaluable going forward. 

You can check it out for yourself right here.

The second oil stock you should be looking for isn’t located in the United States, and I guarantee you that you won’t see it splashed across media headlines. 

Within the next few months, the Trans Mountain pipeline expansion is going to finally be completed, which will open up the Canadian oil sands to be exported across the Pacific. Up until now, the only market these Canadian oil companies could really tap into has been the United States. 

Players like Cenovus Energy (NYSE: CVE) are planning to boost output by nearly 20% over the next five years, and will soon have access to key asian markets like China. 

Not only will it have access to more oil-hungry customers like China, but are trading at strong valuations right now. 

Personally, I think it’ll be a 2024 winner that’ll surprise you.

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.

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