Prepare for an Oil Boom

As a contrarian, you'd be smart to bet against the crowd... and bet on much higher oil prices. [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] Prepare for an Oil Boom By Brett Eversole --------------------------------------------------------------- Things couldn't get much worse for fossil fuels... The clean-energy revolution is reducing demand for oil and natural gas in the long term. Meanwhile, fears of a global recession are higher than ever... weighing on demand in the short term. Put it all together, and it's a tough time to invest in energy. It's the worst-performing sector in 2024 so far. And oil prices just hit their lowest point since 2021. Now, everyone has given up on oil. Sentiment just fell to one of its lowest levels in recent history. But don't let that fool you... If history is any guide, a major rally is about to begin. Let me explain... --------------------------------------------------------------- Recommended Links: [Here's What You Missed Last Week]( The man CNBC's Jim Cramer said he would never bet against just issued a dire warning. In short, he reveals the truth about what's really happening in the U.S. stock market... and how all the market forces we've seen so far in 2024 – AI, record-breaking volatility, the risk of a recession, and more – could trigger a dramatic reversal that could blindside investors. [Click here for details](. --------------------------------------------------------------- [Are You Ready for the Great Crash of 2024?]( This year, the S&P 500 Index has posted dozens of new all-time highs... the Federal Reserve just cut rates... and popular AI stocks have experienced an incredible run up. But what should you expect next? Renowned investor Porter Stansberry just stepped forward with his next big prediction and how he's personally preparing (which you can do, too). [Click here to learn more](. --------------------------------------------------------------- Commodity prices move based on supply and demand. But it's not just today's environment that counts – it's also the expected supply and demand in the future. The market is usually pretty good at guessing these things. But expectations can be wildly wrong at extremes. And when they are, you can set yourself up for profits as an investor. That's where the oil market is now. Folks have good reasons to be pessimistic. But today's level of pessimism is simply overkill when you compare it with history... We can see it by looking at the Commitment of Traders ("COT") report for oil. This weekly report shows us what futures traders are doing with their money. And when these folks are all betting in one direction, it's a strong contrarian signal. That's the exact situation we have today. Futures traders are near the most bearish we've seen in the past 15 years. Take a look... Futures traders are the most bearish they've been on oil since June 2023. And before then, we hadn't seen this kind of sentiment since 2010. Importantly, the chart shows that similar COT lows have a history of happening at bottoms for oil. And once the sentiment bottom is in, oil tends to soar. You can see what happened after the circled sentiment lows in the table below... The relationship here is clear... When futures traders give up on oil, a major rally begins. The only question is whether it will be a quick move higher or a multiyear surge. We've seen two rallies that each lasted more than 12 months. Those led to average gains of 96% for oil. The other three all lasted less than a year and led to average gains of 39%. Regardless, we know one thing for certain... Today's low oil prices and bearish sentiment won't last for long. And despite how crazy it seems today, history suggests we'll likely see $100 oil at some point in the next year. Few investors think that's possible today. But as a contrarian, you'd be smart to bet against the crowd... and bet on much higher oil prices. Good investing, Brett Eversole Further Reading "You want to buy when the trend is in your favor," Brett explains, "before the crowd catches on to the opportunity." For most of the year, one safe-haven asset has flown under the radar while outperforming the market. But the story is out now. And that means a slowdown could be around the corner... [Learn more here](. "If you buy the wrong bonds at the wrong time, you can still lose your shirt," Brett writes. A popular bond fund that tracks long-term government bonds recently broke out to its first new 52-week high in years. But history shows that it's not a trend we can expect to last... [Read more here](. --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers' feedback. To help us improve your experience, we'd like to ask you a couple brief questions.]( [Click here to rate this e-mail]( You have received this e-mail as part of your subscription to DailyWealth. If you no longer want to receive e-mails from DailyWealth [click here](. Published by Stansberry Research. You're receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberryresearch.com. Please note: The law prohibits us from giving personalized financial advice. © 2024 Stansberry Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Stansberry Research, 1125 N Charles St, Baltimore, MD 21201 or [stansberryresearch.com](. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Stansberry Research does not recommend or endorse any brokers, dealers, or investment advisors. Stansberry Research forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Stansberry Research (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.