Why I'm So Bullish On Oil Stocks
In prior videos I have gone over some of my favorite oil stocks and etf’s but n this video I wanted to go over why I think oil and oil stocks will be such a good investment over the next 2-3 years.
There are many convincing charts that show that crude stocks are drawing down and are now at the 5 year average. This is why we have seen the recent surge in oil prices going from /barrel to /barrel.
But the question on where we go from here is looking and supply and demand a few years out. It is obvious that demand will be up about 5 million barrels/day a few years from today. The questions is where will the supply come from. Most countries around the world are producing pretty much at max output. Don’t get me wrong, there are countries that can definitely increase production, but not without massive new investment to explore new fields. With the current underinvestment in oil exploration to keep supply constant estimated to be around trillion, it is easy to see that there could very well be a supply gap in the next few years and consequently a rip up in oil prices. Since oil demand is so inelastic any sort of supply shortage will result in a massive move to the upside.