More investors are turning bullish on oil stocks, and it’s not too late to get in.
I’ll share two reasons why I encourage you to keep an eye on oil stocks with significant profit potential in the weeks and months ahead, but first…
Here are recent catalysts to give you a sense of what’s coming in this profit-rich sector.
- Shrinking U.S. supply — according to the EIA’s Drilling Productivity Report, U.S. shale output is on track to decline for the third consecutive month. It is expected to come in at 9.4 million barrels per day, the lowest level since May 2023.
- Saudi output cuts and record demand have increased the bullish sentiment in oil, pushing Brent Crude past $93 per barrel for the first time since November 2022.
- The surge in oil prices reshapes bets across global markets and sets the stage for a hawkish tone from central bank meetings in the U.S., the UK, and Japan.
- Oil prices rose for another day after Azerbaijan launched “anti-terrorist” operations in the Nagorno-Karabakh region with the Armenian population.
- China’s private-sector refiners have started lobbying Beijing’s Ministry of Commerce to issue a fourth batch of crude import quotas, already running out of the 194-million-tonne allocation received from three quota allocations this year.
These are just a few pointers, but as I said earlier…
There are two reasons you won’t regret trading or investing in the right oil stocks.
They’re priced attractively, and oil companies have remained profitable in 2023. For example, ExxonMobil’s first-quarter earnings doubled the $5.5 billion it earned last year. And Chevron’s earnings were slightly above the $6.5 billion it made in Q1 last year.
Yet, both stocks are trading below their record highs, making them attractive for folks looking to buy low and sell high. However, tempting as they seem, there are lesser-known names just 0.001% of their size and 3-12x more profitable for us.
Go here to see how we build profitable positions in these little-known names.