A lot goes into how much you pay at the pump⦠[Turn Your Images On] [OPEC Holds the Key to Oil’s Future + Your Next Move]( [Turn Your Images On]
[Matt Clark,
Chief Research Analyst]( Inflation has hit everyone right in the wallet. Everything is more expensive today than it was a year ago. But one thing that has actually dropped in price over the last 12 months? Gasoline. Last year, after Thanksgiving, the price of a regular gallon of gas was $3.54 nationwide. Today, that average is just $3.24 â a $0.30 drop. [Turn Your Images On] [(Click here to view larger image.)]( Even here in South Florida, gas prices fell below $3 a gallon just after the holiday. Gas prices have steadily sunk lower for more than 60 straight days â just in time for the holiday shopping season. But the excitement may be short-lived due to one event happening today. Let me explain⦠The Crude Oil Conundrum The price of gas is closely correlated to the cost of a barrel of oil. While gas isn’t the only byproduct of a barrel, each barrel is good for around 19 to 20 gallons of gas. So the higher the price of oil, the higher the price of gas. [Turn Your Images On] [(Click here to view larger image.)]( As I write, the barrel price of West Texas Intermediate crude is just under $75. A year ago, it was more than $77. Today’s price is 20% lower than the 52-week high of more than $93 a barrel in September earlier this year â when gas was nearly $4 a gallon, on average. But it’s not that simple. Oil prices fluctuate based on supply, demand and speculation. While market makers play a big role in setting that price, oil-producing nations can directly impact it. Saudi Arabia is one of the world’s largest oil producers. But it doesn’t just pump an endless supply of oil to put on the market. That would create a glut of supply and drive prices into the ground. Instead, they help control the price of oil by controlling how much they sell on the open market. If demand is low, oil prices typically fall because there is more oil on the market than is needed. The opposite is true if demand is high⦠Oil prices rise because there isn’t as much of it. It all boils down to simple supply and demand. Sometimes, these oil-producing countries will take matters into their own hands if the price of oil is too low â because that means profits are too low. They will voluntarily cut production to create higher demand. That’s what could be happening today⦠--------------------------------------------------------------- [Turn Your Images On](
[Profit From OPECâs Oil Forecast Through 2045]( The IEA says global oil consumption hit a record 103 million barrels a day in 2023. And OPEC expects global demand to reach 116 million barrels per day by 2045. Saying “there’s potential for this jump to be even higher.” Now you can have the shot at profiting from this new boom in oil. As Adam O’Dell has just revealed the details on his number one oil stock for 2024. It’s a tiny oil stock with the potential to surge by January 31, 2024. [Click here for all the details now](. --------------------------------------------------------------- OPEC+ and Oil Price Control Saudi Arabia is part of a conglomerate of oil-producing states called the Organization of Petroleum Exporting Countries (OPEC). It’s a core group of mostly Middle Eastern and some African nations. An extension of that is OPEC+ â the 13 members of OPEC and 10 other countries that work with the organization but aren’t members. This group plays a massive role in determining oil prices. Today, the group is meeting to discuss even deeper oil supply cuts than those already in place â some members of OPEC+ have enacted cuts of about 5 million barrels per day, or 5% of daily global demand in 2022. The reason is simple: Oil prices are too low ⦠at least for OPEC’s liking. This is due to tensions in the Middle East, available oil supply from non-OPEC countries and prolonged weaker demand in countries like the U.S. and China. In order to buoy oil prices higher, these nations have to cut back on the amount of oil they put on the market ⦠remember supply and demand. This meeting was supposed to take place over the Thanksgiving weekend, but some African nations balked at production cuts. So in order to get some kind of consensus, the meeting was postponed to today. If OPEC+ follows through with further cuts into 2024, it will erode the surplus of oil already on the market and ⦠more importantly to OPEC ⦠settle oil prices and send them higher again. Analyst’s estimates suggest that the move would see oil prices between $80 and $100 a barrel for the foreseeable future. If you were enjoying those low gas prices, don’t get used to it. But as an energy investor, today’s OPEC event is set to be a catalyst for the next bullish move in oil. If you’re wondering how you can take advantage of that move, my colleague [Adam O’Dell has you covered](. He’s found a tiny $20 oil stock that’s set to become a leader in this growing $10 trillion industry. If you want details on how to access his No. 1 oil stock recommendation today, [click here](. Have a great rest of your week! Safe trading, [Matt Clark signature]
Matt Clark, CMSA®
Chief Research Analyst, Money & Markets --------------------------------------------------------------- [Turn Your Images On](
[This New Tech Could Be Worth THREE TIMES the Entire New York Stock Exchangeâ¦]( Experts believe this new tech will create more wealth than all the fortunes of the last 150 years combined. That’s why the world’s richest men and even the United States Senate approved throwing hundreds of BILLIONS of dollars into this new technology⦠[And right now, there’s a little-known stock at the center of all the action.]( In fact, this small-cap stock is still trading for less than it costs to buy a tank of gas.
[Click here now for the whole story.]( --------------------------------------------------------------- Check Out More From Stock Power Daily: - [PITFALLS AND PROFITS: HOW TO FIND THE RIGHT GENOMICS STOCKS]( - [DON’T INVEST IN THE “BLACK FRIDAY TRAP”]( - [AI’S NEXT CHALLENGE + HOW 2 STOCKS RATE]( Privacy Policy
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