Make no mistake; the world is moving more and more toward renewable energy…
Wind, solar and hydro are where the world wants (and some say NEEDS) to go in order for us to continue to live in harmony with out planet.
Whether or not that is the case – isn’t the Gorilla’s call…
What is – is whether or not people will have the ability to make money going forward – but that’s a conversation for another day because the simple fact is: this world runs on oil and it’s going to dictate business and the market for years to come.
That said…
Oil has been the cheapest it has been in decades as supply is outstripping demand – but that may be about to change as oil may be about to see a price explosion…
And here’s why.
We’ve all benefited from cheaper oil prices…
And not just at the pump when we fill up – as we’ve seen the impact of those low prices echo around all of the other markets as cheaper crude has led to cheaper manufacturing and shipping costs across the board.
We’ve ALL collected the spoils of a price war…
While Saudi Arabia and Russia have been arguing over the fact that supply has been overflowing as Russia has kicked production into high gear.
However, after some negotiations, the two OPEC countries have come to an agreement and it seems that they’re going start ramping down soon.
The impact that this is going to have on the global markets will be measurable…
As we will be able to watch how it affects every industry going forward.
But it has been confirmed…
OPEC nations are expected to cut production by roughly 20 million barrels per day – which is huge as it works out to be about 20% of global daily supply – though they’re starting small and only cutting it by 9 million bpd for now.
Don’t think this has anything to do with the economy…
It comes down to profit. They were having issues WAY before the coronavirus even popped up on the scene – they just couldn’t come to an agreement of what to do.
The truth is, even before the pandemic hit – they had been losing money for months due to their little “tiff” over production – and now they want to get back to making big money.
What was the point of contention?
It seems that Russia and Saudi Arabia were unable to agree to curb output as the coronavirus pandemic worsened.
So, instead of altering their agreement or staying at the negotiation table – they canceled the deal, and Saudi Arabia increased daily output to about 12 million bpd – wreaking havoc on prices, causing them to fall as low as $23 per barrel.
But they were forced to come to an agreement as the industry has changed over the past 20 years…
In that time, America has not only become energy independent, but we’ve also become one of the biggest exporters of oil as well.
This has changed the way that OPEC nations have had to do business…
As there is actual competition out there.
However, seeing as the US, Canada and few other non-OPEC countries like Brazil are cutting production too – oil could be set to see an incredible price explosion over the coming months.
Meaning investors could be on the verge of a HUGE profit opportunity if we can time this right.
The slow down in production JUST happened…
Meaning that as the supply starts to dwindle – the prices should start going up.
There are so many ways that we can take advantage of this – it’s honestly hard to know where to look first.
It’s like being a prospector in 1849 and walking into a cave that has multiple veins of gold…
It’s hard to know where to start first – we just know that we need to start digging soon.
We can always start at with the big boys…
We’ve got BP (BP) and Exxon Mobil (XOM) – and host of other larger companies – but the fact remains, there are literally THOUSANDS of other plays that we can make when it comes to the oil industry.
Thousands.
In fact, I wouldn’t be surprised to see some of these other plays pop up on the GorillaTrades matrix…
Especially seeing as the market – while not exactly solid – has become a lot less volatile over the past few weeks.
We could get one as soon as tomorrow…
So if there was ever a better time to consider becoming a subscriber to GorillaTrades – I’ve never seen it!
Regardless of what you decided, you may want to consider taking a good hard look at getting back or into oil.
It could be the most lucrative play we make this year!
“Even if the economy crashes, we will still burn oil.” – Robert Kiyosaki