What's Driving Oil Prices Today?

That’s an interesting outlook given the... [Energy and Capital Header] Practical Investment Analysis for the New Energy Economy What's Driving Oil Prices Today? Keith Kohl | Jun 13, 2024 Are oil prices today in the right spot? [Last week]( I told you that the market was wrong. The sharp selling took place after OPEC+ announced that it might start phasing out production cuts as early as October 2024 depending on market conditions. Wall Street took that as a signal to run straight for the exits as WTI prices fell below $73 per barrel. In case you’re wondering, that’s what panic looks like, and it didn’t take long for prices to rally back to near $80 per barrel. For us, it was an easy buying opportunity to spot, and now the question that should be on everyone’s mind is: Where’s it headed next? Well, this week has turned me even more bullish down the back stretch of 2024. Here’s why… U.S. Gov’t Backs Small Firm Solving The AI Energy Crisis The AI sector's explosive growth is setting us on a collision course where a single company's energy needs could rival those of entire nations... Potentially triggering SEVERE consequences like rolling blackouts nationwide and skyrocketing energy costs. But ONE company holds the key to preventing this crisis... With a breakthrough tech designed to fulfill the surging power needs of our AI-driven future. Its shares are currently selling for just a few dollars. [Discover all of the details of this tiny tech company here.]( The Oil Price War Between OPEC and the IEA Rages On For the past few years, a bitter battle has waged between OPEC and the IEA. The two groups have been at odds over where oil is headed for as long as most of us can remember, with their war of projections being played out before us across the media stage — with the latest salvo launched by the IEA this week. In its latest oil market outlook [released yesterday,]( the IEA may have finally broken from reality. As usual, the report is about as bearish as one could get. However, you may notice quite a disconnect between the IEA’s projections and what we’re seeing around us today. It was chock full of bearish surprises, from a supply surplus starting in 2025 to a plateauing demand of around 106 million barrels per day by 2030: [oii demand iea 1] Things are going to go so well that the world will achieve an unprecedented level of supply capacity of 113.8 million barrels per day over the next five or six years. But wait, there’s more! New Nuclear Energy Could Mint Millionaires A new kind of nuclear power is about to transform the grid. Forbes calls it "the go-to energy source in America." It’s called a small modular reactor, or SMR. The first one of these cutting-edge reactors is expected to come online on U.S. soil this year. Tech billionaire Marc Andreessen calls for "1,000 new state-of-the-art nuclear power plants in the U.S. and Europe right now." AND almost ALL these SMRs have to buy fuel from one Midwestern company. Most people don’t even know this company exists... That’s why shares are set to skyrocket as soon as this story hits the mainstream. [Get the full story here while there’s still time.]( According to the IEA’s forecast, demand will only rise by another 3.2 million barrels per day between now and 2030 thanks to an accelerating transition of clean energy technologies. In fact, surging EV sales and increased efficiency will offset roughly 6 million barrels per day in fuel demand. That’s an interesting outlook given the slumping momentum in EV sales this year. Look around, and you’ll see that major automakers are starting to temper their aggressive EV goals. Earlier this year, Mercedes-Benz delayed its electrification by five years. That’s not to mention the most recent tariffs that the U.S. and EU are slapping on Chinese EVs. President Biden imposed a 100% tariff rate on EVs last month, and yesterday we learned that the European Commission is placing tariffs on Chinese EV producers due to the unfair subsidization they receive. Of course, we’re also assuming that the charging infrastructure will be in place for such drastic growth, too. Don’t get me wrong, I’m not saying the EV transition won’t ever occur — it will! But it seems the IEA’s timeline is a bit more fantasy at this stage. Meanwhile, it’s important to point out that the IEA (and our own EIA, too) has a dirty habit of revising their forecasts when it is painfully obvious they won’t come to fruition. How many times have we seen the IEA revise its global oil demand forecasts to the upside? Personally, I’ve lost count. I should probably mention that throughout it all, OPEC has stayed true to its demand growth projections of 2.2 million barrels per day in 2024. The oil cartel may have its own problems, but we can at least give it points for consistency. It turns out that the IEA’s overly optimistic predictions are going to get the oil bears into a lot of trouble later this year,should a supply deficit emerge during the third and fourth quarters. And right now, there’s only one place I’m looking to find value in U.S. oil stocks — we’ll dig into that next time. Until next time, [Keith Kohl Signature] Keith Kohl [[follow basic]Check us out on YouTube!]( [EAC ICYMI Header]( Income Powerhouse REVEALED: The Military's Secret Landlord What do Northrop Grumman, Boeing, and General Dynamics have in common? Beyond being billion-dollar defense giants, they ALL rely on one of America’s top landlords. For nearly 30 years, this little-known company has owned and managed critical properties for the U.S. military, including offices, labs, and data centers. Most of these properties are leased long-term to the U.S. government and major contractors, ensuring steady cash flow for both the company and investors. Regular investors could earn up to $46,600 annually from these payouts, which have remained consistent and reliable... Making this one of the safest and most lucrative investment opportunities available. [Discover more about this secret military landlord.]( [Fb]( [Li]( [Tw]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Energy and Capital, Copyright © 3 East Read Street, Baltimore, MD 21202. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info [here]( including our privacy policy and information on how to manage your subscription. If you are interested in our other publications, please call our customer service team at [1-877-303-4529](tel:/18773034529).