It was with my subscribers at the ENERGY WORD that I positively laid down my timeline for recovering oil markets. In Late August I noted to subscribers that the negativity that was pummeling oil stocks was creating several fantastic value opportunities, and counseled investors to find price targets to either begin accumulating or add to already existing energy positions.
On September 1st, I sent out an email alert with a simple message: “…..the time has come……”.
Those that heeded this call have been rewarded with some stellar gains.
But, wait – who do I see shedding his pessimistic view and preparing to jump on the DICKER ENERGY WORD bullish bandwagon?
Why that’s Ed Morse of Citibank………
Morse is looking at the marginal OPEC members outside of Saudi Arabia and noticing that they also require capital investment to develop fresh oil assets. Morse now believes that investment won’t be quick to appear, with oil companies getting far more conservative in their foreign investment and with these countries like Iran, Iraq, Libya, and Nigeria all teetering on economic collapse.
Morse now believes that the output we’re seeing from these countries is about as much as they can muster and they won’t be able to pump much more, no matter what the demand picture for 2017 and 2018 is.
And that demand picture is incredibly strong.
About 1.7 – 1.8 million barrels a day stronger, according to the IEA, which would blow out just about every previous forecast.
READ THIS and get a sense of how accelerating global trade is driving that incredible demand for oil.
Wait – who’s THAT who are sprinting to jump on the last car of this fast departing oil train?
Yep, that’s Evan Calio of Morgan Stanley, writing a note (restricted access) yesterday saying that there might be some value in the overlooked oil sector, which was left behind in the last two-quarters by an on fire stock market and a commodity sector that has similarly exploded. Here’s my favorite part, referring to US oil companies: “….increased balance sheet focus, continued asset sales, relative moderation of growth (outspends) and a longer-term capital return message for many large-caps.”
Translation: Maybe the breakneck suicide plan of spending big to ratchet up oil production in an unprofitable oil market that most US E+P’s were following isn’t working out so well, and they are left with little choice but to change to more rational tactics.
All of these messages have already been sent by me – and profitably heard – many weeks ago if you were a subscriber to the ENERGY WORD.
And guess what? I’ve got other messages that both Morse and Calio haven’t yet given to their clients about oil and oil stocks – messages that ENERGY WORD subscribers are using today to target the best oil stocks that are going to deliver the best returns in this ongoing oil renaissance.
But here’s my bet. I’ll bet that the messages I’m delivering today will be repeated by Morse and Calio – and maybe Jeff Currie and Francisco Blanch……………later.
Wouldn’t you be better off knowing them today? My next webinar is scheduled for Monday, October 9th.