As Hurricane Isaac dances along Katrina’s pathway almost seven years later to the day, many of us are remembering those sky-high gas prices from 2005.
That’s because Isaac is pushing gasoline higher this week. And we’re in for even-more pricing pain ahead … especially with the Labor Day travel holiday just around the corner.
Energy is the sector to be in, and in today’s video I’ll share with you one of my subscribers’ favorite energy names.
Good luck and good trades,
Sean
P.S. There are a lot of great stocks in the energy sector, many of which pay nice fat dividend yields. Join my Global Resource Hunter subscribers today and get specific details about all the great opportunities ahead for careful investors. Don’t wait — sign up today!
Video Transcript
Hi, this is Sean Brodrick for Uncommon Wisdom Daily.
This part of the country has been focused on Hurricane Isaac all week. But even if you don’t live in Florida or along the Gulf Coast, you’ll still be negatively affected by the storm.
Just consider that even before Isaac made landfall, gasoline refiners in the Gulf of Mexico shut down production, reducing supply by 1.3 million barrels a day. All in all, there’s a total of 2.4 million barrels a day of refining capacity in the region around New Orleans.
Even if all that energy infrastructure escapes Isaac relatively unscathed, analysts say it’s only a matter of time before another big storm takes a bigger toll.
In fact, just the threat of the hurricane was enough to drive up gasoline prices — prices that have already risen more than 7% over the past two months. But it’s only going to get worse — gasoline futures have jumped 19% recently, and prices at the pump tend to lag futures by a few weeks.
And looking further ahead, we could be in for even more pain. Just consider that gasoline and diesel inventories are at their lowest levels for this time of year since 2008. Gasoline stockpiles are down 3% since last year, and supplies of distillates, which include diesel fuel, are down 19%.
In addition, U.S. refiners have ramped up fuel exports by nearly 50% just since last year.
And finally, the peak driving season is dead ahead. Demand is actually down overall since last year, but AAA forecasts that automobile travel will rise more than 3% during the upcoming Labor Day weekend, with more than 28-million people on the roads.
So that’s the bad news. But there is plenty of good news for investors looking to profit from this trend. In fact, subscribers to my Global Resource Hunter service are already cashing in with Valero Energy, symbol VLO.
As you can see, Valero is breaking out to the upside. And I think it’s set to go much higher over the weeks and months ahead. Of course, if you’re investing on your own, make sure to do your own due diligence, and have a solid exit strategy, before buying anything.
In addition to Valero, there are a lot of good stocks in the energy sector, many of which pay nice fat dividend yields. I tell my Global Resource Hunter subscribers about them all the time, and there will be plenty more opportunities ahead for careful investors.
I’m Sean Brodrick for Uncommon Wisdom Daily. Thanks for watching.
