Eagle Ford Shale and predict it would lead to a new all-time high in U.S. oil production. Then production soared.
Now, my good friend Flavious Smith, Jr. and I are making another absurd prediction. Our long-term prediction is that oil will trade for more than $500 per barrel.
That probably sounds nuts to you. After all, oil is cheap.
And to the average Joe, it doesn’t look like that’s going to change anytime soon. Global supply continues to outpace demand, and current prices make it uneconomic for most companies to drill. I’m not saying oil prices are going to bounce back tomorrow. They still have a little more “work” to do on the downside… I believe we’re entering a five- to 10-year period where oil will form a major bottom ... before shooting hundreds of percent higher in the coming years . We’re about to see once-in-a-lifetime opportunities to make major investments in the world’s best oil assets. Getting just one or two of these bets right could set up your portfolio for several decades. The reason is simple: Oil demand is going to absolutely soar over the next several years . The Road to Oil $500
Oil is so cheap right now because supply outpaces demand. There’s more oil being produced than people can consume.
The Organization of the Petroleum Exporting Countries (OPEC) agreed to cut two million barrels a day of oil production in late 2016. But the cuts didn’t work. Oil in storage has continued to grow.
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