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55.4 Million Reasons to Buy Oil While It’s Cheap

Keith Kohl

Written By Keith Kohl

Updated November 28, 2023

Oh how the times have changed. 

Just a few weeks ago, WTI crude was knocking on the door at $90 per barrel. Geopolitical volatility had reached a feverish peak in the October 7th attack on Israel and sent prices surging higher.

Now couple this with renewed fears of demand destruction from slowing Chinese demand, record output from U.S. drillers (despite sluggish drilling activity), and the fact that Wall Street money managers are making incredibly bearish bets on oil, we saw oil fall below $73 per barrel late last week.

Oil feels cheap right now. 

Here’s why…

55.4 Million Reasons Oil is Cheap

I hope you’re enjoying the short work week. 

However, there’s one part of Thanksgiving we can all agree that nobody is thankful for: Holiday travel. 

In years past, traveling on holidays like Thanksgiving and Christmas have been the bane of my existence. You’d think so too if you’ve ever spent 8 hours inching your way through 122 miles of bumper-to-bumper traffic on I-95. 

And that’s just my own driving experiences.

I can’t tell you how many travel horror stories I’ve been told by readers who had to brave the friendly skies. From the grueling hours standing in line after line at the airport, to flight delays — and that’s assuming your flight wasn’t canceled last minute, too — to the endless migraines from dealing with five million other people rushing to get where they need to go. 

But that’s the price we pay to be with our families and friends, right?

And this Thanksgiving will be a little more special than the last few. 

You see, this year’s AAA 2023 Thanksgiving travel forecast has projected that 55.4 million Americans will travel for the holiday. 

For the record, this is not just a 2.3% increase over last year, but is also expected to be the third-highest Thanksgiving forecast since AAA started tracking this back in 2000. 

Demand isn’t just making a comeback, it’s strong.

Not only will 49.1 million Americans hop in their car and make the trek to their holiday destinations, but our Airlines are bracing for a record amount of air travel. In fact, the TSA is expecting to screen more than 30 million passengers this week. 

At least there may be a silver lining for some of us. 

According to AAA, the national average for a gallon of gasoline right now is $3.31 per gallon. This is more than $0.25 per gallon cheaper than where it was last month, when crude prices were precariously higher. 

That may feel like a slight victory to some, but it may not last very long. 

If there’s one thing we can count on when crude prices dip this low, it’s OPEC. The group is set to meet this weekend in Vienna, and oil prices are already starting to rally over the potential decision to make a deeper cut. 

Although I’m not convinced we’ll see the group cut production further, it’s safe to say that the voluntary cuts by Saudi Arabia and Russia will be extended into 2024, which as the Wall Street Journal pointed out recently, is more than enough to ensure the surplus currently expected in the first quarter disappears. 

You see, OPEC doesn’t have to cut production for the market to remain tight. 

The real wild card here remains firmly in our hands, and whether or not the U.S. can continue growing production beyond record levels. 

If the EIA numbers are correct, our domestic production has been climbing all year and currently at an all-time high of 13.2 million barrels per day!

That’s one thing to be thankful for this week. 

Now let me show you exactly how to take advantage of it.

Until next time,

Keith Kohl Signature

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

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