In either scenario, higher oil prices will come. There is no such thing as a quick fix when it comes to natural resources.
Looking at the fundamentals surrounding oil can be difficult. Instead, I rely on the charts, which show that oil is at a critical level right now.
Rig count has long been a great proxy for oil production. Simply put, the more oil rigs, the more oil they can pump. However, all of that has changed now.
Oil demand isn’t going away anytime soon. In fact, it’s growing. And producers have to find those additional supplies somewhere.
Monitoring the large speculators is not a precise timing indicator. But it’s a valuable piece of information to determine when it’s the right time to bet against the crowd.
In November 2016, OPEC announced cuts to oil production. Now, a year and a half after the production cuts, the organization has accomplished its goal.
As oil prices rise, investors are jumping into oil stocks. However, there’s a good reason why we do not own any oil-producing companies in the Real Wealth Strategist newsletter right now.
The room was unanimous on that point. They didn’t want to hear about oil. Yet in the face of all those commonly held beliefs, the price of oil rallied.
The price of oil is nearly 200% higher today than it was at the bottom in 2016. And we could easily see oil prices spike to $100 per barrel on bad news.