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Oil Outlook 2022: My #1 Oil Stock to Buy NOW

Written by Keith Kohl
Posted September 22, 2021

Nearly a year ago to the day, I told my readers that we could easily see crude oil prices climb to $85 per barrel in 2021.

In fact, had a few other catalysts triggered this year, a run into triple digits certainly wouldn't have been out of the question.

For us, it was impossible NOT to be bullish on oil this year. 

Remember, we saw WTI prices actually turn negative last year as the world braced for more COVID lockdowns. 

Think about that for a moment…

Oil Outlook 2022: Breaking Down Projections

There was a point when drillers wanted to pay YOU to take their oil off their hands.  

By the final quarter of 2020, prices were dismally trading around $40 per barrel — certainly nothing to write home about. 

But like I said, it was only a matter of time.

And oh, what a difference a year can make. 

Prices have more than doubled since last November, with a barrel of WTI fetching more than $75 in July. 

It’s true, 2021 was a steady stream of bullish moves for the oil sector. 

But that’s all in the past, and now I have to ask just one thing...

Did you miss it?

Perhaps there’s a better question on your mind: How will oil perform for individual investors in 2022?

Well, one thing we know for sure is that there will be winners, there will be losers, and there will also be downright profitable opportunities for smart investors. 

Let me show you...

Although we can pin much of oil’s recent bullish move into the $70 range on foul weather, 2022 is shaping up to be another profitable year.

After all, Hurricane Ida barreled through the Gulf of Mexico and hit Port Fourchon, Louisiana, as a Category 4 storm. 

That storm led to roughly 96% of crude oil production and 94% of natural gas production in the Gulf of Mexico being shut-in.

Fortunately, you haven’t missed the boat yet.

You just need to know where to look. 

Top Oil Stocks to Buy NOW for 2022

Right now, the Energy Information Administration (EIA) is projecting a slight decline for WTI prices in 2022.

After averaging an abysmal $39.17 per barrel in 2020 (thanks to the havoc COVID-19 lockdowns wreaked upon the global economy), WTI prices are expected to average approximately $65.69 per barrel this year and then slightly decline to $62.37 per barrel in 2022. 

As always, the real move for oil will depend on the supply/demand picture.

Take a look at that situation for yourself:

miagesupplyanddemand

You can see for yourself that while global demand is projected to exceed supply by more than 1 million barrels per day this year, the fundamentals will remain extremely tight as we move through 2022.

The world’s petroleum and liquid fuels demand is expected to average 97.4 million barrels per day this year. 

Considering that global consumption is currently above 98 million barrels per day, we’re expecting it to once again surpass the psychological benchmark of 100 million barrels per day in short order. 

In fact, analysts are expecting that demand to rise by another 3.6 million barrels per day next year.

Fortunately, you haven’t missed the boat yet.

You just need to know where to look. 

Even assuming that OPEC+ will gradually increase oil output going forward, finding the very best and brightest players in the U.S. oil patch is the key.

My readers and I have been capitalizing on oil’s quiet comeback all year by doing just that. 

And nowhere else will you find a better driller than in the Permian Basin

I’ll tell you my favorite right now...

When it comes to pure Permian players, it’s harder to find a better driller to buy right now than Diamondback Energy (NASDAQ: FANG). 

Not only has Diamondback remained profitable throughout the pandemic, but the company is drilling some of the lowest-cost wells in the country and should experience explosive year-over-year earnings growth throughout 2022. 

It’s my favorite oil stock for 2022, and it should be yours too. 

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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