OUR PROJECTION FOR OIL $500 THE MARKETS WILL CONTINUE TO BOOM AND BUST DUE TO FUTURE ADVANCES, DISCOVERIES, AND GEOPOLITICAL EVENTS... BUT THE GENERAL TREND IS UP
$500 OIL
$300 $350 $400 $450 $500 $150 $200 $250 $0 $50 $100
Booms along the way due to geopolitical events
Busts along the way due to technological advances and new discoveries
EIA projects $200 oil by 2035
$50 oil today
PROJECTED
1910 1900 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
www.stansberryresearch.com
Source: BP Database, Quandl, Morning Money Crude Oil Price History
However, it will not be a straight shot higher. The oil market is and will always be volatile, with many booms and busts on the way to $500 per barrel. It’s in our best interest to keep an eye on the forecasted moves in the sector over the short term. These short-term predictive measures usually involve the analysis of supply and demand. We can look at any number of sources on a daily and weekly basis, but here are a few of the industry standards... 1. OPEC’s Monthly Oil Market Report : As you can tell from its name, this report is published monthly. It details the major global issues to monitor in regard to the oil markets as well as what you can expect over the following year. You can find this report under the “publications” tab at www.opec.org. 2. The EIA’s “Markets & Finance” updates : Specifically, you’ll want to pay close attention to the Short-Term Energy Outlook and related reports. You can find these at www.eia. gov/finance.
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