U.S. gasoline prices have jumped 8% in the past month. And Brent crude oil, an international benchmark, has already reached $120 a gallon.
Gas prices are going up, my friend. But there are several ways to ride this trend and make extraordinary returns. Today I’ll give you three areas of the energy industry where I see the best opportunities. Watch the video for all the details!
Yours for trading profits,
Hi, this is Sean Brodrick for Uncommon Wisdom Daily.
You’ve probably noticed that the price of gasoline has jumped 8% in the last month. But instead of panicking, you can use that information to look for profits in the energy sector.
Consider the report just put out by the Obama administration, titled “The Blueprint for a Secure Energy Future.” It points out that the United States reduced net imports of crude oil by 10% last year, or 1 million barrels a day. As a result, we now import just 45% of our petroleum, down from 57% in 2008.
Meanwhile, domestic crude oil production is soaring. It increased by an estimated 120 thousand barrels a day last year. And current U.S. production, about 5.6 million barrels a day, is the highest since 2003.
For smart investors, these facts can point the way to some definite areas for profit. For example, look for well-positioned domestic oil producers who are ramping up production and growing their reserves. If they’re small-cap companies, that’s even better, because they’re likely to get snapped up by the big oil giants with too much money and not enough oil.
Speaking of which, I think crude oil is likely to head even higher. As you can see, the price of light crude in the U.S. has broken the neckline of an “inverse head-and-shoulders” pattern. That suggests it could surge to at least $120 a barrel. If that seems farfetched to you, just consider that Brent crude, an international benchmark, is already over $120.
The government report also noted that the U.S. has been the world’s largest producer of natural gas since 2009. And use of the fuel is about to take off, thanks to domestic U.S. automakers. Both General Motors and Chrysler recently announced bi-fuel pickups able to run on natural gas. Ford has produced natural-gas powered fleet vehicles since 2009, and should also be making inroads into the consumer market. If passenger vehicle use of compressed natural gas takes off like I think it will in the next five years, this could be the start of a big product cycle for car manufacturers.
A third area for profit in the energy sector is with pipeline operators. After all, if we’re using all that natural gas, then it has to be shipped across the country somehow. And to top it off, a lot of these pipeline companies pay hefty dividends.
I’ve been recommending that my subscribers ride the wave in select oil and natural gas stocks, and we’re doing well. If you’re investing on your own, my advice is to be very careful. But if you have the guts to buy into this wild market, you could find some extraordinary profit opportunities.
I’m Sean Brodrick for Uncommon Wisdom Daily. Thanks for watching.