Download now: Oil Price Outlook 2024

You'll Never Guess the Reason Why Oil is a Must Buy Right Now

Keith Kohl

Written By Keith Kohl

Posted January 16, 2024

History is full of fortune tellers. 

The ancient Greeks had The Pythia of Delphi, a high priestess possessed by Apollo who delivered messages for those that sought her out for advice.  

In the 16th Century, the French had Nostradamus whose cryptic rhyming quatrains are still being interpreted today. 

Much later, there was even Edgar Cayce who would reveal the future events of the 20th Century while asleep.

But you don’t need leaking vents of ethylene gas in Delphi, or read the tea leaves in bad French poetry, or even get astral projections to send your mind into the spirit world to see what’s ahead in 2024 for crude oil. 

In fact, there’s one signal right now that’s pointing to oil heading much higher this year. 

China Monster Demand Driver

Throughout the early parts of 2023, we were told that China’s economy was on the brink of collapse; that its economy was on the precipice and once it teeters over the edge, there would be no stopping the destruction. 

I didn’t buy that fairy tale and neither did my readers. 

What happened?

Well, it turns out that China imported more oil than ever before! In fact, we now know that China’s imports averaged 11.28 million barrels per day last year — a 11% increase compared to 2022. 

Upon reflection, was it REALLY a hard call to make considering that China had just lifted its oppressive COVID restrictions? 

Of course not. 

According to the IEA, China’s petrochemical demand is going to drive global oil consumption in 2024, and today it has officially surpassed pre-COVID levels:

china oil demand

We’re not just talking about jet fuel, gasoline, and diesel either. These are the products you won’t hear people talking about — clothing, plastics, detergent, fertilizer — the things we use everywhere and everyday in our lives. 

And believe it or not, this is a win-win situation for the United States. If there’s one thing that China will need to satiate this growing hunger, it’s petrochemical feedstocks. Demand for products like naphtha, liquefied petroleum gas, and ethane in China is nearly 2 million barrels per day higher than its pre-COVID peak in 2019.

Fortunately, there’s one place they can count on to boost their imports of these products: The United States.

Thanks to surprisingly higher supply in the U.S., China has found the perfect source for its needs, and it turns out that the U.S. is exporting a significantly higher amount of these products to both China and Europe. 

I’ve said before that crude oil at $70 per barrel is not only a gift, but a screaming buy right now. 

The only question left is whether you’re going to stay on the sidelines for this one or not. 

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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