Just a quick update on big energy profits relative to the dollar’s strength.
So the 10-year Treasury yields jumped to 4.55% this week, strengthening the dollar, pushing the dollar index to its highest since November last year, and prompting the Fed to signal another interest rate hike before the end of this year (as I had forecasted here).
Now, concerns around prolonged rate hikes usually weigh on oil prices…
But that didn’t stop our capital gains from both sides of the fossil fuel price action.
Short story short:
While most people think the prospect of another interest rate hike is bad news for the fossil fuel value chain, the reality is quite different for us traders. We’re unlike most investors who only hope to profit from a stock when prices go up. Instead, we make money from both sides of the price action — up, down, sideways, we don’t care.
See how we’re doing it now as more hedge funds get in on the action.
Another thing:
Last week, I shared a few catalysts to give you a sense of what’s unfolding in this profit-rich sector, including shrinking U.S. supply, Saudi output cuts, China’s private-sector demands, attractive prices, and big oil’s impressive earnings.
But it doesn’t stop there.
See a few more factors keeping prices within lucrative hunting grounds for us.
- U.S. shale producer Devon Energy has said it expects 2024 capital expenditure to be lower than this year due to falling production costs. It aims to maintain production levels around 660,000 barrels of oil equivalent per day (BOE/D).
- Chevron expects to add 65,000 barrels per day (BPD) of crude production in Venezuela by the end of 2024, as laxer sanctions allow it to start its first-ever major drilling campaign in the world’s 12th largest oil-producing country.
- Shell spudded a much-anticipated exploration well in Mauritania’s largely untapped offshore waters, aiming to unlock about one billion barrels of oil.
Remember, it’s not about whether oil prices increase or decrease.
It’s about knowing how to profit from both sides of the price action…
Which is precisely what I’ve outlined here for you.
Give it a watch; it will make you a more confident and profitable trader…
Like it’s done for the folks in my small trading family.