The current stock market is running on meme’s and crypto. Here is a meme about meme stocks. It’s so meta.
Bitcoin has run from $10,000 to $64,000 and is back down to $39,000 today. I first recommended Bitcoin at $449.00 back in 2017 in The Bull & Bust Report and my readers took some massive profits along the way.
And not to brag, but as luck would have it, I had recommended AMC in my trading service Launchpad Trader at $6.71. We took 193% profits when it jumped to $19 back in January.
Given the way the media are hyperfocused on meme stocks and crypto, you’d think they were the only game in town. However, while all this speculation is going on there has been a stealth bull market in oil.
Perhaps you’ve noticed at the pump? Here in Maryland, gasoline is over $4 a gallon.
Demand Is Back
Look, the global economy is reopening. Airplanes, in the U.S. at least, are full. Rush-hour traffic is back. And the price of oil just hit a three-year high. West Texas Intermediate is at $71.80 a barrel.
Supply and demand dynamics are creating a squeeze. By August you could easily see $90 a barrel.
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OPEC recently said:
Global oil demand will rise by 6 million barrels per day (bpd) this year from the lows of 2020, led by strong consumption in China and the United States, especially in the second half of 2021 with growing economies and border reopenings.
The International Energy Agency added:
Our first detailed look at 2022 balances confirms earlier expectations that OPEC+ needs to open the taps to keep the world oil markets adequately supplied. Global oil demand will continue to recover and, in the absence of further policy changes, by end-2022 reach 100.6 mb/d.
Buy Oil
I’ve recommended a number of oil plays over the past two months and all of them are up. I recently recommended EnLink Midstream (NYSE: ENLC) to my Launchpad Trader readers.
I wrote:
The company is at a 52-week high, pays a 7.37% dividend and was just upgraded by J.P. Morgan to a buy.
Furthermore, the company just raised its 2021 guidance.
From Briefing.com:
- Co raises FY21 net income guidance to $125 million–$165 million, up from $45 million–$105 million.
- Co raises FY21 free cash flow outlook to $335 million–$365 million, up from $275 million–$325 million.
The company will benefit from increased production in the Permian basin. EnLink will increase its Midland processing capacity by 29% or 150 million cubic feet per day.
In 2014 this was a $40 stock and we are just bouncing off of 20-year lows.
Buy EnLink Midstream LLC (ENLC) it is currently trading at $5.67.
The company is up 14% in the last two weeks and moving higher.
There are a number of oil stocks 80% off their highs at a time when production is down, demand is surging and oil prices are about to skyrocket.
You heard it here first,
Christian DeHaemer Christian is the founder of Bull and Bust Report and an editor at Energy and Capital. For more on Christian, see his editor’s page.
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