Prepare For A Sudden Rebound In Oil Prices

There’s no question that it’s been a tough time to be an oil investor.

After hitting $112 in 2014, prices dropped to $26.21 in 2016 — a 76% decline.

Then, after prices nearly doubled last year, light sweet crude has fallen 9% in 2017.

The seesaw action has wreaked havoc on the resolve of oil bulls. And the prospect of U.S.-based frackers flooding the market with oil again could weigh down prices even more.

But if OPEC’s recent agreement to hold down production in an effort to reduce oversupply sticks, there’s a lot more upside ahead.

Senior analyst Jonathan Rodriguez provides the perfect way to profit from the momentum.

Ahead of the tape,

Louis Basenese
Chief Investment Strategist, Wall Street Daily

Don’t Buy the Hype… Oil is on the Upswing

Oil’s had a rough ride over the last three years. But the market is providing one of the best opportunities in history to establish a position.

Why?

The war waged between the Saudi Arabian-led OPEC and U.S. frackers may soon be over.

As you likely know, in an effort to starve out low-cost shale drillers that were gobbling up market share, OPEC revved up production to record-breaking highs.

This drove prices from more than $100 a barrel to less than $30 — a multidecade low.

And for the last three years, the world has been overrun with far more oil than it needs.

At the end of 2016, global oil production hit 98.3 million barrels a day (mb/d), according to the International Energy Agency.

Worldwide demand, on the other hand, came in at 97.9 mb/d.

At present, the world is still oversupplied by about half a million barrels a day.

But starting in January, OPEC — the cartel of 13 oil-producing nations — finally agreed to curb oil production by nearly 2 million barrels a day through mid-2017.

And so far, OPEC has registered a 90%-plus compliance from member nations.

The production cut helped boost the price of West Texas Intermediate crude as much as 20% since November.