In the first two parts of this series on what I call the “Oil Games,” I described for you the very real risk that ISIS presents to the world oil market, and the ways in which Saudi Arabia has assured that oil prices will ultimately rise because of the actions the Kingdom took on November 27 of last year.
Today, I bring you the final chapter: the story of the Assassins.
These Assassins are investors in the oil market who have already staked out a position to profit massively from what’s heading our way.
And I share this story for one reason: As these Oil Games play out, winners and losers will emerge. The losers will be those who keep asking, “will oil prices rebound?” and ultimately prove ill-prepared for what promises to be higher oil prices, particularly if those prices move radically higher in the event ISIS makes good on certain threats to upend Saudi Arabia.
The winners will include you, if you choose to position your portfolio to profit alongside the Assassins.
And the Assassins see exactly what I see.
They don’t have to ask will oil prices rebound. They know that any move by ISIS to attack or control a Saudi oilfield will be cataclysmic in the oil market. And that is ISIS’ goal — not because ISIS leaders necessarily care about oil. They don’t; they care only about Islamic purity. But they’re practical enough to understand that he who controls the oil, controls the Middle East and ultimately can impose great economic pain on the rest of the world.
Will oil prices rebound? Not only will they surge higher, but amid ISIS mayhem, oil rockets well past its historic highs and toward $200 a barrel.
But even absent an ISIS crisis, the Saudis have all but guaranteed prices higher than the $60 a barrel we see today. When the Saudis refused to cut production in November amid falling oil prices, they set in motion a string of events that has now seen the world’s oil-exploration companies reduce their capital spending by $100 billion, a reduction of more than a third. That means fewer new reserves will be found anytime soon, which means that as the world’s existing crop of reserves peter out, the industry will not have the capacity to quickly replace them — the same scenario in the late ‘90s that led to oil’s run to historic highs in the mid-2000s.
Either way, the Assassins know that oil prices will rebound, and they’re positioned to profit.
Big Bets Surge on Oil’s Future
These assassins I’m talking about are oil speculators — big, institutional investors who make big, speculative bets on the direction of oil prices.
Back in oil’s pre-crisis heyday, speculators were so active in the oil market that one commodities specialist told Congress that speculators were trading contracts in the “futures” market that amounted to more than one billion barrels of oil daily — 11 times the amount of oil the world actually produces every day.
Some speculators went a step beyond.
They started leasing oil tankers, those super-sized ships that ferry oil around the world. They filled the ships with oil and parked them offshore, then traded contracts against the oil to sell it in the future at higher prices.
The speculators were effectively assassins in the market. As the mainstream media wondered “will oil prices rebound?” these Assassins had a very good idea of where oil prices were going, and staked out their position and made fortunes big and small as the market moved in their direction.
Today, the Assassins are at it again.
Several trading firms such as Vitol Group, Trafigura and even Shell have begun leasing supertankers to store vast quantities of oil on the seas in expectation that oil prices will be sharply higher a year from now, and that the stored oil will return huge profits.
But you don’t have to be a hedge fund or a global oil trader to follow in the Assassins’ footsteps. You don’t have to own physical oil to make a killing in the oil market.
You just have to own exposure to the investments that will mirror oil’s rise.
That’s the ultimate message of the investigative video I will send you very soon. Titled “Oil Games,” it explains why all of this is happening, how it flows through your pocketbook and the ways you can position yourself to protect your standard of living and make your own small killing alongside the Assassins as oil prices climb.
Be on the lookout for it. That video shows you how to get an insurance policy against ISIS and Saudi Arabia.
Until next time, stay Sovereign…
Jeff D. Opdyke
Editor, Profit Seeker