As I (Chris Lowe) have been showing you, we’re facing a new “oil shock”…
The first kicked off in October 1973.
That’s when Saudi Arabia and other oil-producing Arab nations banned oil exports to the U.S. and its Western allies.
They were retaliating against President Nixon’s decision to arm Israel in its fight against a group of Arab nations during the Yom Kippur War.
The embargo lasted until March 1974. Over that time, the U.S. crude oil price shot from $3 to $12 – a 300% gain.
This triggered waves of crippling gasoline shortages.
Things got so bad, Nixon passed the National Maximum Speed Law to save gas. It banned speed limits higher than 55 miles per hour on U.S. highways.
And in the Netherlands and West Germany, governments introduced car-free Sundays.
Now, history is repeating. And unless you live off-grid, it’ll affect you directly.
Take it from the world’s leading energy watchdog…
In 1974, the U.S. and its allies set up the International Energy Agency (IEA) to respond to disruptions in oil supply.
The organization advises member states on how to cope with exactly the kind of crisis we’re living through today.
And in a report out last Friday, the IEA called to reimpose 1970s-era emergency gas rationing measures.
They include lower speed limits on highways… car-free Sundays… and rules that limit you to driving your car every other day.
So today, we’ll continue to shine the spotlight on the oil market.
We’ll look at why the IEA thinks we need gasoline rationing. And I’ll show you why U.S. crude oil prices could roughly double from here to $200 a barrel.
Then I’ll share how you can profit from this new oil shock… including details on colleague Teeka Tiwari’s first-ever U.S. Energy Independence Summit, which kicks off tonight at 8 p.m. ET.
Russia is the world’s largest oil exporter…
The country’s war with Ukraine has brought on official economic sanctions from governments and unofficial sanctions from major industry players.
So Russian exports are drying up.
The IEA says this will shut in 3 million barrels per day (bpd) of oil. That’s about 3% of daily global oil consumption.
That may not sound like a lot… But it’s a big deal.
Vladimir Putin pounced on Ukraine at a time of heightened energy weakness in the West.
The OECD (Organization of Economic Co-operation and Development) is a group of 38 nations. In January, oil reserves across these countries were at their lowest since April 2014.
Along with the cuts from Russia, this puts us on course for what the IEA calls the “biggest supply crisis in decades.”
Though some countries may boost production to offset lost Russian exports, the IEA estimates that we could face a 700,000 bpd deficit starting in the second quarter.
It’s why one top oil trader sees $200 oil in 2022…
His name is Pierre Andurand. He’s a French hedge fund manager who specializes in figuring out supply-and-demand balance in the crude oil market and what it means for prices.
His funds have made cumulative returns of 900% to 1,300% for investors since 2008.
And in 2008, during the last big spike in oil prices, Forbes listed him as one of the 20 highest-earning hedge fund managers.
In July that year, oil peaked at $147 a barrel.
But Andurand says the supply-demand balance is tighter now than it was then. So prices should be higher now.
Oil is currently at $115 a barrel. And thanks to inflation, that $147 in 2008 is worth about $200 today.
That’s why last Thursday, Andurand told Bloomberg he saw oil prices heading “close to $200 a barrel” in 2022. So he’s betting on oil prices roughly doubling before the year is over.
This will not only hit your wallet…
It will also have major affects across the economy.
Oil is the world’s most popular transportation fuel. It goes into just about every good and service we pay for.
It’s also the biggest factor in gasoline prices. So rising oil prices bring pain at the pump.
The new oil shock will push up the prices of other commodities, too. The higher oil prices go… the higher extraction and transportation costs go.
The IEA put out this stark warning…
The impact of loftier prices for oil and other commodities will […] increase inflation, reduce household purchasing power and are likely to trigger policy reactions from central banks worldwide – with a strong negative impact on growth.
Surging energy and other commodity prices, along with financial and oil sanctions against Russia, are expected to depress world GDP [gross domestic product].
But as I’ve been spreading the word on, you don’t have to be a victim of rising oil prices and spiraling inflation.
You can position yourself on the right side of these troubling trends.
That’s what Teeka’s new recommendation is all about…
If you’ve been following us for some time, you’ll know him as our crypto investing expert.
He’s helped his readers see gains of 18,970%, 21,431%, and 32,966% since he first started recommending crypto at our Palm Beach Confidential advisory in April 2016.
But he didn’t start his career as a crypto expert. He started on Wall Street more than three decades ago. There, he became the youngest vice president in the history of investment firm Shearson Lehman. Then he left to set up his own hedge fund.
And since joining the team at Legacy Research, he’s helped his readers profit from the revolution in psychedelic medicine… the metaverse… and the growing demand for agricultural fertilizer.
Right now, one of the biggest opportunities on Teeka’s radar is higher oil prices. Here he is with more on that…
This year, gas prices are up as much as 23%. And because the ban on Russian oil imports isn’t in full force yet, there’s more pain to come. Prices will get uglier in the short term.
It’s a painful reminder that energy independence is important. Regardless of what you think about the war between Russia and Ukraine, it’s shown how critical oil is to our national security.
That’s why President Biden declared the conflict in Europe a “stark reminder that, to protect our economy over the long term, we need to become energy independent.”
But this oil shock has also created an opportunity for you to secure your financial future.
I’ve already shown you how to profit in the public stock market…
You can buy shares of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
It gives you exposure to a basket of top oil-and-gas exploration stocks.
But Teeka says you can do better than that. You see, he’s found a way to play higher oil prices in the private – or pre-IPO (initial public offering) – market.
It’s a small company that’s answering the call to help the U.S. become energy independent.
It’s discovered a way to produce oil for a fraction of the cost that most foreign producers pay. Teeka again…
Russia supplies the U.S. with 540,000 barrels of oil daily. That’s about 197 million barrels a year.
But the private company I’ve found in America’s heartland can produce an estimated 1 billion barrels of oil annually.
And while Russia’s cost per barrel is about $20… and Saudi Arabia’s is about $10… this private U.S. company estimates its oil costs 65 cents a barrel.
It’s all due to a technological breakthrough enabling it to produce environmentally sound oil – without drilling and fracking – cheaper than anywhere else in the world.
This company’s tech is so promising, one of America’s largest investment banks has become its largest shareholder. This firm is behind some of the most profitable private deals of the past 150 years – including returns of 47x, 100x, and 159x.
And although this U.S. oil company is still private, you can get in the deal – no matter your net worth.
But as with all private companies, shares are strictly limited.
One of the last private deals Teeka recommended was gone in 12 hours.
So it’s critical you join him to learn all the details at his free U.S. Energy Independence Summit tonight at 8 p.m. ET.
Regards,
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Chris Lowe
March 23, 2022