| Charles Sizemore here, chief editor of The Banyan Edge, with an idea that sets the stage for your moneymaking potential in 2023.
Adam O’Dell recently called for $500 oil in a brand-new research presentation about the oil markets.
Many people, even those who know Adam well, had trouble believing $500 is possible. But today, I want you to meet an analyst who not only agrees with Adam, but thinks people’s shocked reactions are unwarranted.
His name is Matt Clark, editor of Stock Power Daily over at Money & Markets and right-hand analyst to Adam O’Dell. Read on to see why … well, you read the headline!
Matt says $500 oil is not crazy, and it could actually hit as soon as this year…
— Charles Sizemore | Chief Editor, The Banyan Edge | Why $500 Oil Isn't as Crazy as It Sounds by: Matt Clark | Chief Research Analyst, Money & Markets
January 01, 2023 Banyan Nation,
It all started with one shot.
It rang out 6,000 miles from the U.S., but it wound up setting off a chain of events that would affect everyone from Los Angeles, California to Helsinki, Finland.
After oil prices languished for years, Russia’s invasion of Ukraine sent Brent and West Texas Intermediate crude to highs we haven’t seen since 2014.
It’s choked energy consumers from across Europe who have long depended on Russian oil.
And that pressure has spilled over to the U.S., where gas prices got so high, President Biden emptied the Strategic Petroleum Reserve to knock them back down.
Despite all this, oil prices are 40% off their 2022 highs. Many believe the trend has met its end.
I’m here to tell you it hasn’t. And we could easily see new highs in oil that nearly 4X the previous ones.
Call it outrageous if you want…
But today, I’ll lay down all the facts so you can draw your own conclusions, as Adam O’Dell and I have… |  | | BlackRock, Bridgewater Associates and Berkshire Hathaway are loading up on oil because it will power energy’s emerging $10 trillion market. And on December 28, Adam O’Dell revealed the details on his No. 1 energy stock for 2023. An oil company he believes is set to hit 100% gains in the next 100 days. Click here to watch. | $500 Oil: We’re Not the First and Won’t Be the Last Since 2000, a barrel of West Texas Intermediate crude oil topped $120 just once.
In June 2008, American-drilled oil touched $140.
Brent crude — the European oil standard — hit its high of $132 at the same time.
Looking at these past peaks, a claim that oil could climb more than four times higher sounds absurd. But we’re not the first to make this claim, and we very likely won’t be the last.
Check out this report from … of all places … the U.K. Ministry of Defense in 2013:  (Click here to view larger image.) At the time, the report cited the rising global population, depletion of oil reserves and “the growth of South Asian economies” as reasons why oil could reach $500 a barrel.
This was before Russia’s invasion of Ukraine shut off almost half of Russian oil to the outside world.
And before a key Russian oil pipeline was mysteriously sabotaged earlier this year.
While it seemed outlandish at the time, if you fast-forward to today, it isn’t outside the realm of possibility.
And it all comes down to arithmetic.
If we boil this down to simple math, the prospect of oil reaching $500 a barrel isn’t impossible.
Consider this:  (Click here to view larger image.) Coming out of the 2001 recession, West Texas Intermediate crude was around $19 a barrel. By 2008, the same barrel of oil was $140 — that’s a 636.8% increase in under seven years.
Today, oil is about $76 per barrel. Up 300% from where it was coming out of the corona crash of 2020.
If we tack on a 636.8% increase to the current price, that puts the cost of a barrel of oil at $483.97 a barrel.
We saw the same thing with Brent crude:  (Click here to view larger image.) The point here is that we’ve seen past percentage gains back up the fact that we could absolutely find oil at $500 a barrel in the future.
And bear in mind, it’s not just us and the U.K. Ministry of Defense who think this way. Big banks are also starting to get behind the idea.
Bank of America said back in March that oil could hit $200 a barrel… And just a few months later, JPMorgan projected oil could reach $380.
What do both banks think could cause this surge?
The only two factors that cause prices for anything to surge — rising demand and tight supply… |  | | JPMorgan, Wells Fargo and Goldman Sachs all say oil will roar higher. Which is why Warren Buffett, Ray Dalio and Carl Icahn are investing billions. And on December 28, Adam O’Dell revealed the details on his No. 1 oil stock for 2023. An oil company he believes is set to hit 100% gains in the next 100 days. Click here to watch. | Record Demand, Russian Invasion or Not In case you missed it, the world population just passed 8 billion.
Take a step back and think about how many lives that is. Eight billion people with places to go, people to see, things to do.
Eight billion people who need to stay warm in the winter, fill up their gas tank and consume a massive variety of goods — many of which in some way involve petroleum.
Advances in renewable energy tech aside, oil remains the top choice for fuel and transportation by a huge margin.
And beyond that, oil does things renewable energy simply can’t. It's used for thousands of everyday items like plastics, textiles, cosmetics and lubricants.
These products are used everywhere, from the lowest-income households, to restaurants, to massive factories and everything in between.
As populations around the world become larger and growing economies require more oil to keep things running smoothly, demand for oil will continue to increase.
The Organization of Petroleum Exporting Countries, or OPEC, has held production down, despite this increase in demand. And we’ve already seen how crucial Russian oil is to a large part of the world, and what happens when that supply is cut off.
This is why energy could easily skyrocket into a $10 trillion market over the next decade.
And it’s not just us here saying that.
The biggest money in the market agrees, and they’re backing up the truck on oil stocks to prepare… Why Billionaires Are Buying Up Oil Stocks In recent months, billionaires have been snatching up shares of oil companies left and right.
For example… After not buying stocks for years, Warren Buffett just recently started scooping up stocks again. And he’s predominantly buying oil companies: - $9 billion in Occidental Petroleum.
- $2.7 billion in Dominion Energy.
- Nearly $24 billion in Chevron.
Why does Warren Buffett buy anything? Because he believes the price is right.
Buffett also clearly knows we’re about to enter a new bull market in energy. He sees the cycle playing out … right now.
He’s building on to his fortune now by being “greedy,” scooping up valuable energy stocks at a discount. All this while everyone else is still afraid and licking their wounds from 2022’s stock market shellacking.
And he’s not alone. Billionaire hedge fund manager and owner of the Carolina Panthers football team, David Tepper, has also been on an energy buying spree, picking up: - 2.7 million shares of Constellation Energy.
- 2.8 million shares of the natural gas company EQT.
- And more than 10 million shares of Energy Transfer.
Asset manager Steven Cohen spent $104 million on shares of FirstEnergy Corp. and BlackRock’s Larry Fink spent $52 million on shares of ExxonMobil.
On top of all that, activist investor Carl Icahn just bought 5.8 million shares in Southwest Gas … a $440 million position.
These billionaires aren’t billionaires because they make bad decisions.
They see the writing on the wall with oil, and they’re placing their bets now for an energy super bull that will take most other investors by surprise. |  | | Warren Buffett, Ray Dalio and Goldman Sachs all agree. Now’s the time to bet BIG on oil. And on December 28, Adam O’Dell revealed the details on his No. 1 oil stock for 2023. An oil company he believes could hit 100% gains in the next 100 days. And beat the gains of Exxon, Marathon and Occidental. Click here to watch. | How You Can Profit From Oil at $500 a Barrel My colleague and Money & Markets chief investment strategist, Adam O’Dell, and I have had our eyes on this trend for months.
It’s also why the “smart money” has been pouring into oil stocks lately.
You see, oil companies make a profit when the demand for oil-based products is high. Those profits are even greater when oil prices are higher.
Demand drives the need to explore and drill for more oil. Higher prices put more money in oil companies’ pockets because they spend the same to take the oil out, but they get more when they sell it … increasing their profit margins.
This makes oil stocks especially attractive right now.
All of this is why you must check out a recent conversation Adam and I had, which we called “The Oil Super Bull Summit.”
During this special event, Adam gave viewers all the details on his number one oil stock for 2023. A stock, he believes, that could rise 100% in the next 100 days.
There’s not much time left to view this presentation before it comes offline, so click here to make sure you don’t miss it.
Safe trading,
Matt Clark, CMSA®
Chief Research Analyst, Money & Markets
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