Why I Am So Bullish On Oil

[View this email in your browser]( Sometimes, I believe investing is a lot simpler than anyone thinks. One of the strongest conviction trades I have had for probably 6 months now is that I believe crude oil will continue to go higher. I'm talking much higher than $100 a barrel. And yes, that means much higher prices as the pump. No charts. No Fibonacci. No indicators. No insider buying (is that even a thing in a commodity?). Just supply and demand. Let's break it down. The lower the supply, the more likely oil prices go higher. The greater the supply, the more likely oil prices go lower. If you are an oil producer, and your pipelines have been shut down (or are going to be shut down), your permits are being withheld or declined, your land is being confiscated, and your government is talking about creating excess profit or carbon taxes, what incentive do you have to increase supply? That's right, none. Governments, surprising to nobody, are removing the incentive to increase production, and as we know. everyone follows the incentive. And we haven't even talked about lockdowns. Does anyone think lockdowns increase the supply of anything? The greater than demand, the more likely oil prices go higher. The lower the demand, the more likely oil prices go lower. Governments, around the world, are and have been stimulating demand via stimulus checks, printing money, and "stimmies". Do governments around the world printing trillions (not billions) of dollars and handing that money out increase or decrease demand? It increases it. So, back to simple economics 101. Governments are incentivizing oil producers to not increase supply. Actually, there is a good argument Governments around the world are incentivizing oil producers to cut supply. Governments are stimulating demand. So, if supply is not going up, and demand is up by a few trillion, what do you think is going to continue to happen to oil prices. They go up. And you also know who to thank for that. Stay small and win more trades, Steven STONY BROOK SECURITIES LLC IS A PUBLISHER AND DOES NOT OFFER TRADING ADVICE OR RECOMMENDATIONS. ALL INFORMATION IS PROVIDED FOR EDUCATIONAL PURPOSES ONLY AND NOT AN OFFER OR A RECOMMENDATION TO TRADE FUTURES CONTRACTS, STOCKS, OPTIONS OR FOREX. GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THE TRADING IDEAS AND TRADING METHODS SHOWN ON THIS WEBSITE MAY HAVE WORKED IN THE PAST; BUT PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A HUGE RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH TRADING FUTURES CONTRACTS, STOCKS, OPTIONS OR FOREX CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION SINCE ALL SPECULATIVE TRADING IS INHERENTLY RISKY AND SHOULD ONLY BE UNDERTAKEN BY INDIVIDUALS WITH ADEQUATE RISK CAPITAL. AN INVESTOR COULD POTENTIALLY LOSE ALL OR MORE THAN THE INITIAL INVESTMENT. [FULL INVESTMENT RISK DISCLOSURE]( Copyright © 2022 Steven Brooks Trading LLC, All rights reserved. Want to change how you receive these emails? You can [update your preferences]( or [unsubscribe from this list](. Questions? Contact support@stevenbrookstrading.com