Leave Luke Alone!

I don't know who among you has been up in Luke's mentions, castigating him, but we need to set some things straight right now… I don't know who among you has been up in Luke's mentions, castigating him, but we need to set some things straight right now... [Outsider Club logo] Leave Luke Alone! [Jason Simpkins Photo] By [Jason Simpkins]( Written Feb 18, 2022 Ladies and gentlemen, I have some disturbing news to report... I was talking to my friend and colleague Luke Burgess yesterday and he told me, and I quote: "People are giving me shit about my $100 oil article." Now, I don't know who among you has been up in Luke's mentions, castigating him, but we need to set some things straight right now... First off, Luke is one of the best in the business. He's been following commodities for decades and as someone who has access to his Junior Mining Trader portfolio, I can tell you he has open gains ranging from 43% to 103%. Every time I talk to Luke he has something fascinating to tell me. And secondly, as it pertains to [his oil price prediction](: he's right. Luke told you last week that oil is going over $100 per barrel. And since that article was published nine days ago, oil prices have climbed more than 2.5%. In fact, at the start of the week they were even higher (6.6% higher) as WTI crude reached $95.52 per barrel. Oil prices have climbed for seven straight weeks. So we're already edging toward triple digits, just like Luke said we would. And I think in the next week or so we'll get there. This is principally because of supply-demand dynamics, which are wildly out of balance. [QUIZ] Most Investors Get This Wrong What do you think is about to kill Tesla? ([Skip ahead for the answer.]() - [Elon Musk’s tweets]( - [SEC]( - [Chinese competitor NIO]( - [Off-the-radar fuel (NOT hydrogen)]( No matter what you pick, when you really think about it, the answer isn’t actually that surprising. Make your selection to find out! You see, global crude consumption bounced back to 96.2 million barrels per day in 2021, according to the International Energy Agency, after slumping to 88.5 million barrels per day in 2020. And this year it's expected to stalk even higher, to 99.5 million bpd. That would be almost exactly where it was prior to the pandemic — and a near-record high. [Oil Demand 2022] However, supplies are badly lagging. You see, the world's leading oil producers — OPEC, Russia, and its Eurasian allies — cut production deeply in 2020, siphoning a total of 9.7 million bpd (about 10% of global demand) off the market. As demand returned, the group said it'd ramp back up and increase production by 6.4 million bpd, and further promised to boost production by 400,000 bpd monthly until it reached pre-pandemic levels. However, the group known as OPEC+ raised its production by just 250,000 bpd in December, which is only 60% of what it promised. And in January the group pumped 700,000 bpd less than what it said it would, with co-leaders of the group Saudi Arabia and Russia also pumping below their quotas. All told, OPEC is still producing 2.5 million bpd less than it was at the start of 2020. Have You Heard of “TriFuel-238”? A single ounce could power your home for a year. Under half an ounce could get you from LA to D.C. And now, according to figures from the U.S. Energy Information Administration... The breakthrough known as "TriFuel-238"... Could trigger a wealth event unseen since the dawn of the internet... As it takes the throne as the cheapest source of energy on the planet. This has nothing to do with renewables or fossil fuels — or virtually anything you’ve ever seen before. Yet this strange substance could now claim the lion’s share of a $1.9 trillion opportunity... And hand early investors a potential life-changing fortune. [Click here for the urgent details.]( Now the Biden administration is begging Saudi Arabia to pump more. Biden himself even called King Salman last week, but these diplomatic efforts don't really seem to be working. And apparently in a private gathering at the International Energy Forum in Riyadh last week, the Saudi energy minister, Prince Abdulaziz bin Salman, also rejected the requests of the world's top oil consumer. He argued that renegotiating quotas between OPEC members would invite volatility to the oil market rather than stabilize it. “The kingdom is not on the same page with the U.S. currently,” said an OPEC delegate. “We all know they are not ready to cooperate with the U.S. to calm the market.” In fact, the group has actually been so resistant to the idea of raising output that it's not even clear it could raise production if it even wanted to. To wit, seven of 13 OPEC members had a drop in output in January, as technical malfunctions and supply bottlenecks undermined production. And countries like Libya and Kazakhstan could see their production drop further still amid political unrest. And a potential invasion of Ukraine could lead Russia (which produces 10% of the world's oil) to cut its exports to Europe. All of this has been known for a while. It's why [I predicted an oil price spike around this time last year](. It's why I called triple-digit oil a "near-certainty" back in January. And it's why Luke is right about oil's bullish future. And as Luke pointed out, it's not really even a question of "if" oil prices will top $100 per barrel, it's how much higher they'll go from there. In the past week I've seen predictions ranging from $120 to as high as $150 per barrel. That would put us back up by, and potentially past, the record-high price levels we last saw in 2008. The #1 Strategy for Biotech Stocks? 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To that end, total retail sales surged 12.7% in January when compared to last year, and 3.8% on a monthly basis, according to the Advance Monthly Sales Report released by the Census Bureau. That trend is further corroborated by recent earnings reports from companies like Walmart, which raised its guidance after counting a 6.4% increase in sales in 2021 and 15% surge on a two-year stack. And as long as long as the global economy continues on its growth trajectory, and people are willing to open up their wallets and gut out higher gas prices, there's not going to be any impetus for oil producers to flood the market and lower prices. So listen to Luke. He's even got a fresh report out on a miracle mineral that's going to completely dwarf the gains we've seen in oil. [So check that out here.]( Fight on, [Jason Simpkins Signature] Jason Simpkins [follow basic]([@OCSimpkins on Twitter]( Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of Wall Street's Proving Ground, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's [page](. *Follow Outsider Club on [Facebook]( and [Twitter](. Browse Our Archives [Space Mining: From Fiction to Fact]( [Why I'm Not Crying Today]( [A Day of Reckoning for Washington Insiders]( [Russia Will Cheat the World... But Not Smart Investors]( [Squares, Circles, and the Real Future of Power]( --------------------------------------------------------------- This email was sent to {EMAIL}. It is not our intention to send email to anyone who doesn't want it. 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