Why Oil Prices Will Keep Moving Up From Here

Please do not reply to this message. Replies to this message are routed to an unmonitored mailbox. You are receiving this email as a part of your subscription to Oil & Energy Investor. Your ability to alter your subscription information can be found at the bottom of this email. [Oil and Energy Investor with Dr. Kent Moors] [Your Rare Second Chance at a Piece of $9.75 Million]( Keith Fitz-Gerald is doubling down on the $9.75 million wager he made last November. Back then, only a handful of people could take him up on the bet. But now they're getting the chance to pocket accelerating average gains of 286%, 425%, and 571% per week (including partial closeouts). This is your rare second chance to join them. [[Five-minute video explains](.] --------------------------------------------------------------- May 18, 2018 [Why Oil Prices Will Keep Moving Up From Here]( Dear Oil & Energy Investor, Kent's Premium Services Energy Advantage [The $2 Trillion Saudi IPO Wealth Action Plan]( Energy Inner Circle [Time to Ride the On-Demand LNG Bonanza]( Micro Energy Trader [How We're Going to Play This $1.7 Billion Merger]( For a sixth straight week, oil has continued to lead the energy sector higher. And for a good reason. The combination of market dynamics and geopolitics have not only pushed both WTI (West Texas Intermediate) and Brent sharply higher, they've also instilled a bullish price mentality Wall Street going forward. As it stands, WTI is now above $71 a barrel, while Brent hit $80 yesterday - breaching an important psychological threshold. Now, here in Oil & Energy Investor, we've spent the past few weeks discussing the factors pushing crude to these multi-year highs. However, today I want to circle back around to something I call the "oil balance," and the toll it's playing in the current oil price environment. Let's jump right in... [Warning] [A human error could have short-changed you $23,44 - Social Security]( Supply vs. Demand When we speak of an "oil balance," I'm referring to a balance between supply and demand, which always assumes the availability of excess volume. Oil requires available volume beyond what the market needs at any time to narrow the pricing range. Of course, too much excess volume will prompt prices lower, while the opposite will drive prices higher. PROFIT OPPORTUNITY As you are about to see, Crude's ascent has only just begun. And there are plenty of other - more lucrative - ways to play oil's rise, if you know where to look. In fact, you should expect crude to rise 30% more in short order. I know, because I've compiled intel about a [colossal upcoming event](. This is the largest financial event of the past century. And I can show you exactly why it's going to push oil prices to $100 or beyond, very soon. You can hear all about that [intel right here](... Including how you could make a combined 1,329% on 4 back-door plays before this event even happens. [Click here for details](. That 'balance" is rapidly emerging and, in some regions, may have already arrived. With supply meeting rising global demand (providing a necessary available surplus in the process, thereby offsetting any drive to a supply-led bout of instability), some "play" for additional volume has emerged. While OPEC continues to toe the mark with production caps in its agreement with Russia, expanding production declines in Venezuela, Nigeria, Libya, along with languishing extraction rates in Mexico and Kazakhstan exist, they will allow space for selective U.S. production increases without a corresponding downward pressure on prices. [Is the Media Covering Up a Story Bigger than N. Korea?]( North Korea continues to dominate headlines with missile tests, nuke buildups, and the death of a recently released American prisoner. This regime needs to be dealt with, but are we missing an even bigger story? [Click here to learn about the threat]( the media isn't covering. The restraint is so noticeable that, this morning, Saudi Arabia pledged to add additional exports to meet increasing demand, following a complaint from India about sufficient supply at an adequate price. The Indian situation will be aggravated by the resumption of U.S. sanctions against Iran. Indian refineries are largely designed to use heavier Iranian grade crude. However, it is at this point that a TV talking head would usually throw the American "monkey wrench" into the conversation.... A Crude Deadlock The large amount of excess U.S. shale and tight oil extractable volume has long been thought to stymie any contraction in global prices. And, for most of the slow recovery throughout 2016 and 2017, that appeared to be the case. But matters have now changed. Put simply; we are in a market environment that allows additional U.S. production without the expected push down in prices. There are three overriding reasons for this. First, as I have already said above, some significant international shortfalls in production are providing a space for additional volume while prices remain intact. If anything, several of those factors - especially Venezuela's situation - are becoming more acute. Yet the remaining two factors are U.S.-based in nature, and have the greatest impact. [Trending] - [This device "will change the world on a scale hardly seen in human history."]( America's Energy Dominance Despite the worldwide production picture, rapid rises in U.S. volume will not take place for domestic reasons. There is little doubt that the U.S. will become the world's leading oil producer, displacing Russia. Already, American production levels are expected to reach 12 million barrels a day. Yet under current conditions, that may put a temper on rapid pricing increases in WTI, but will not automatically change global pricing dynamics. Remember, oil prices are set in demand locations other than North America or Western Europe. That has been the case or some time and requires a more nuanced view of what the U.S. production flow genuinely is. Which brings me to my second point. While U.S. operators could easily ramp up massive production in a short period, they no longer need to shoot themselves in the foot. At $70 a barrel, most of them are now running at a profit. Further, unlike the desperate situation they found themselves in some three years ago (at the low point in the pricing cycle), they are making money and have access to lower-cost debt. This latter point is not true for all producers, but there will always be a shakeout of the least efficient. Nonetheless, the combination of these factors allows U.S. producers to keep extractable crude in the ground, thereby providing an insurance policy and maintaining price, while also offsetting concerns that a spike in aggregate production would threaten profit margins. [This visionary-genius's last startup soared a rare 20,000%]( As an investment banker in the 1990s, this visionary genius made a fortune by uncovering tiny energy microcaps... and pouncing on them just before they skyrocketed. In the 2000s, he took his first energy startup from 40-cents per share to $80 - an exceptional 20,000% gain in just 10 years. Now he's harnessing critical patents to set his new, tiny $2 million startup on the path to a 59,850% revenue surge. [Click here to find out more](... In short, we will see some additional U.S. overall volume. Yet given the problems elsewhere in the world, the level of geopolitical uncertainty existing and a more realistic spread between WTI and Brent reflects the new environment. The more important (and third) point directs attention to where the pricing is really determined. This is international, not American domestic. One of the most important developments in allowing an outlet for additional production has been the dramatic rise in U.S. exports to the higher-priced foreign markets. This has allowed a drain off without adversely impacting domestic operators' returns. Well, this is reaching a limit. The export levels have reached 2.5 million barrels a day, effectively meeting the cap available for U.S. export facilities. These facilities are expanding - a major new focus is moving down the Texas coast from Houston and The Channel to Corpus Christi. This move will provide some nice investment moves, but also is not going to happen overnight. As such, the spread between WTI and Brent is likely to widen as more additional American oil remains in the U.S. market. The main point, however, is a lowering impact of such production on the setting of prices. The essential balance that is being struck also provides a more tempered approach by the U.S. producers themselves. Maintaining the current price level is the key objective. And that has already resulted in internal restraint when it comes to driving production levels up too much, too quickly. The U.S. oil balance used to be about the naked survival of companies. But not anymore. Nowadays it only seeks to maintain revenue levels and returns. Fortunately for us, that paints an even better picture for future investment prospects, which we'll be happy to profit from going forward. Sincerely, Kent Also this week [Think you've earned enough to financially secure your future? Think again.]( Market volatility could wipe out everything you've earned at any given moment. 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You May Have Missed [This algorithm cost $1 million to develop (it's finally here)]( [This expected Bitcoin upgrade could solve its most crucial issue (it could also make you millions)]( [These Mysterious Structures Are Popping Up in the South China Sea]( [New Tax Provision Could Give You the Chance to Receive Checks Worth Three-Times the Average $1,404 Social Security Payment]( --------------------------------------------------------------- Share This Article: [Facebook]( [Twitter]( [More...]( mailto:?subject=Oil%20and%20Energy%20Investor%20with%20Dr.%20Kent%20Moors%20Ph.D.&body=Check%20out%20http%3A%2F%2Foilandenergyinvestor.com%2F --------------------------------------------------------------- You are receiving this email at {EMAIL} as a part of your free subscription to The Oil & Energy Investor E-Letter. 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