The Biden Administration has recently gone hat in hand to Venezuela to try and get more crude oil as gas prices surge. This is after demonizing US-based oil producers who are reluctant to raise production as the administration has watched up regulations on American-based oil production. Now we have calls for windfall profit taxes on oil companies as Putin not dumb policies is blamed for higher US gasoline prices.
The world's largest exporter of grain (Russia) has invaded the fifth largest exporter of grain (Ukraine). In thirty days the planting should begin in Ukraine for the upcoming crop year. That is not going to happen because those areas are the current conflict zone. Russia also has advised that it is stopping fertilizer exports. We have set our food system up so that an interruption like this has the possibility to affected millions of people that are not even involved in this conflict....
www.actionableintelligencealert.com Gold has had a tremendous couple of weeks. Is the recent move higher a result of Ukraine-Russia conflict safe-haven seeking. Or is it a move higher in an unloved, weak sentiment area of the market?
Jeff Currie, the closely-followed head of commodities research at Goldman Sachs Group Inc., says he’s never seen commodity markets pricing in the shortages they are right now. "I've been doing this for 30 years and I've never seen markets like this," Currie said in a Bloomberg TV interview. "This is a molecule crisis. We're out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it we’re out of it."
www.actionableintelligencealert.com Chronic underinvestment in all resources especially oil and gas is leading to a situation where prices will have to move higher for an extended time period in order to incentivize new investment. However, this is being hindered by poor policies and policies that are opposed to the extraction of minerals and resources that will be needed to facilitate the build back better plans of governments. Regardless of the reasons, this will lead to speculative and invest...
www.actionableintelligencealert.com Last week (SLB) reported an upswing in the oil field services sector. This week the Halliburton CEO confirmed what we were forecasting, a sustained upswing in the oilfield services business.
As we have discussed in previous videos, I believe the biggest catalyst for higher oil prices this year is the coming market realization that OPEC+ will not be able to meet the call for supply. As the pandemic recedes and oil demand not only equals but exceeds pre-pandemic levels it will become apparent that there is not enough oil to supply the world's demand. This will result in oil prices above $100/bbl.
Energy has burst out of the gate up around 15% already this year continuing the outperformance we saw in 2021. Will it continue? Many of our stocks had a nice move Friday as I believe investors are getting long as the realization of near-record or record cashflows begins to set in on investor's radar.
www.actionableintelligencealert.com High energy prices have allegedly kicked off a revolution in Kazahkstan as unrest continues. Kazatomprom has issued a press release that their operations are at a high risk of interruption. What does this mean in an already undersupplied uranium market?
www,actionableintelligencealert.com Saying you are going to increase production and actually doing it are two separate issues. Will 2022 be the year that OPEC+ gets exposed for its inability to increase production?
www.actionableintelligencealert.com Yogi Berra was quoted as saying that, "Making predictions is hard, especially about the future." Nevertheless, it is my job to take the best information available and come up with the highest probability outcome. In this case, I believe oil prices head higher and generalist investors begin to return to oil stocks based on the wall of cashflow they will generate this year. Follow me on Twitter: @JohnPolomny Interested in knowing how I translate the information ...
www.actionableintelligencealert.com Hope you enjoy the last update for 2021. Thanks all for all the support and good comments and encouragement this year. Hoping 2022 will be healthy, happy, and profitable.
www.actionableintelligencealert.com "Every day, headlines and stories reinforce the thesis that oil is in a multi-year bull market. It’s time for investors to connect the dots… the world is hurtling toward an oil crisis. A growing population and rising standards of living, combined with the lack of alternatives to oil in the short-term in the transportation sector, suggests demand for the commodity will continue to grow for years to come."
www.actionableintelligencealert.com Lack of investment, continual declines in production, and constant demand growth are all coming together to create a scenario where oil prices will make all-time highs.
www.actionableintelligencealert.com Yes, markets have been terrible the last few weeks. And yes the negative sentiment could persist through yearend. However ask yourself, has anything fundamentally changed? Did anyone announce new uranium mines? What about increased spending on new oil and gas projects. Recall what Buffett said, "In the short term the market is a voting machine and in the long term it is a weighing machine. Market sentiment is bad currently but nothing has changed long term....
www.actionableintelligencealert.com News of the Nu covid variant from South Africa has led to more volatility in the energy markets. WTI was down 13% on Friday 11/26/21. Is the drop warranted? Or is this another buying opportunity for oil and energy in general?
www.actionableintelligencealert.com Oil sold off for various reasons this week. It was overbought and sentiment had become too bullish. Seasonality, SPR release jawboning by the Biden regime, higher dollar, are among the reasons. I still believe we are in an energy bull market due to chronic underinvestment that has restricted supply and will be exacerbated by ESG which will cause permitting, and financing issues for new fossil fuel projects.
www.actionableintelligencealert.com The CPI came in at a hot 6.2% this week. This is pushing negative rates, which drive gold prices, even further into negative territory. Technically the gold stocks just put in support at the key 200 week moving average. This bodes well for further price gains.
CEO of Yara Fertilizer says we are heading for a food crisis because the cost of energy has made fertilizer too expensive to produce. China announces 150 new reactor builds by 2035. The uranium requirement will be 50 million pounds per year of additional supply the world was not anticipating. This is three Cigar Lake mines worth. Wow!
www.actionableintelligencealert.com Just more positive uranium news. I also review the Cameco Q3 earnings report. The CEO says that the prospects may be "the best ever". Also discussed; the huge earnings beat by oil sands operator Suncor. They are gushing cash and using it to buy back stock, increase dividends, and pay down debt. Expect more of this in our AIA portfolio oil stocks.
www.actionableintelligencealert.com The good news for energy investors continued this week as the news in the oil patch is getting better. KazAtomProm decides to create its own uranium investment vehicle. KazAtomProm Announces Investment in Physical Uranium Fund https://www.kazatomprom.kz/en/media/v... Kuwait says drilling, facilities work underway to reverse declining oil production capacity https://www.spglobal.com/platts/en/ma... China wants to cool coal prices. Similar moves for metals, crud...
www.actionableintelligencealert.com The Chinese announced this week that their priority will be to ensure "energy security". They also said they will continue using coal and will intensify the development of internal oil and gas resources. Please notice the shift in the discussion, not just in China, towards discussing energy security instead of an energy transition.
www.actionableintelligencealert.com The now inevitable energy crisis is going to hit hard. More and more info is lining up to tell us to get ready to pay higher prices. A fortunate few that can see through the nonsense will profit. I am telling you how.
www.actionableintelligencealert.com The energy crisis that we long ago forecasted is picking up steam as electrical generation plants close in China and Germany due to lack of fuel. Coal supplies at Indian plants are at low levels threatening shutdowns also. Chinese leadership orders state energy companies to secure energy supplies no matter the cost. The emerging energy crisis represents a tremendous investment opportunity. Don't get left behind.
www.actionableintelligencealert.com High energy prices causing disruption to industry. Fertilizer plants shutting down due to high natural gas prices. Unfortunately, the by-product from those plants is CO2 which the chicken processing industry needs to supply meat. Turkey producer is "canceling Christmas" due to lack of workers and energy prices.
www.actionableintelligencealert.com As power and energy prices spike in Europe (lower winds and higher natural gas prices) protests over record electricity costs continue. Yet our genius central planners are doing everything they can to reduce the supply of energy. All in the name of their new god "climate change". We are heading for an energy crisis and one that will surprise most people. Most people's misfortune will be a great opportunity to profit from a lack of investment and bad choices. S...
www.actionableintelligencealert.com Yes, uranium is the current big story. Nevertheless, don't get caught sleeping on the rest of the energy complex. Tremendous opportunity exists in the oil, natural gas, and coal companies also.
www.actionableintelligencealert.com The Sprott Uranium Trust buying physical uranium is having the effect it was designed for. It is vacuuming up physical uranium supply and forcing the price of uranium higher. This in tune is leading to explosive moves higher in uranium stocks. It has been a long wait but the rocket ship has left the launch pad.
www.actionableintelligencealert.com I have not talked to Justin in around a year. I asked him to come on a few weeks ago and we were finally able to get our schedules together. I was lucky to have him on after the recent bullish price action in the uranium price and uranium shares this week. We discuss a bunch of subjects related to uranium including the Sprott Uranium Trust and the effect it has already had on the market and we have some fun speculating on what could happen in the future. As al...
With the current version of the pandemic beginning to recede, we will see continued increases in oil demand by the end of the year. With inventories already below the five-year average expect higher oil prices by year-end. Bank of America and Goldman are saying $80 oil by the end of the year. Cash flows are already exploding higher at many oil companies. Yet investors are shying away from buying them. Are they missing a huge opportunity?
