What’s Happening To Oil Prices Right Now?

What’s Happening To Oil Prices Right Now?

the truth about oil prices is $200 a
barrel a crazy prediction or is this a
new reality now what’s really causing
this oil price Surge and more
importantly how can you profit from it
so in this video I’m going to break down
the three brutal Truths Behind the
skyrocketing oil prices but don’t worry
this isn’t just some Doom and Gloom
video about Rising oil prices oh yes
we’re going to talk about some Doom and
Gloom that’s driving oil prices and
potentially is the cat us behind that
but I’m going to show you how I’m using
this information to profit I’m going to
show you how you can allocate to this
Rising Trend and show you how you can
increase returns by 60 to 80% with this
little known tip so let’s go all right
welcome to the channel if you’re new my
name is Mark Moss I make these videos to
change the way you think about money
because almost everything you’ve learned
is wrong and trying to understand and
make sense of all the millions of inputs
going on on the market today can be very
difficult but we’re going to break this
down to the most basic component all
right but let’s just start with the
first question that you probably have
which is can oil prices really go up to
$200 per barrel I mean that sounds crazy
right well I don’t have a crystal ball
and there’s no certainties in life so
let’s just look at some of the data and
assess what the probabilities of this
are okay so before we get into the three
brutal truths the Catalyst that are
driving oil prices higher I want to look
at a couple of charts okay so here’s a
chart of the oil prices for the last 70
years now the chart shows oil prices
adjusted for inflation now just as a
side note this is adjusted for the
government’s SE CPI their official
inflation rate which of course is way
understated it’s it’s way worse than
that but let’s just go ahead and go with
this number so as you can see the
previous high in oil was $200 set in
2008 when you adjust it for inflation
and the previous high was
$150 all the way back in 1980 you see
how the price hit 150 and then it
dropped all the way down to 20 and then
it went all the way up to 180 and then
it actually went down to -35 and 2020 it
was a bigger drop so technical analyst
would tell us that it should revert to
the mean but actually past the mean and
it should shoot over the $200 Mark now
the another way to look at this is by
comparing the oil chart to the S&P 500
price now what we can see here is that
oil has historically been trading above
the S&P 500 range except for around the
last decade but it looks like it’s
starting to catch back up if oil just
caught back up to the SP 500 it puts it
around $160 to $200 per barrel now
another way to look at this since 2020
real inflation as measured by the
increase in the money supply has gone up
by over 30% but the price of oil hasn’t
moved up with the price of inflation yet
if you go back and look at the price
trend pre pandemic you can see we’re
barely above the trend line except for
that spike in early 2022 when the Russia
Ukraine war broke out and then prices
spiked temporarily and then they rolled
over pretty quickly and so you can see
that oil hasn’t kept up with inflation
at all now as a side note it’s worth
mentioning that after the price of oil
spiked so high Biden drained the US oil
reserves flooding the market with oil
why well supply and demand by over
supplying the supply it pushed the
prices down the problem well the problem
is that the US has no oil savings
anymore so any problems that happen
we’re out of luck it also means that
Biden can’t manipulate the price of oil
down again and it also means that the us
is going to need to refill these
reserves in the near future at any price
which is only going to add to the supply
demand imbalance again pushing the
prices back up okay but these are all
technical reasons what I mean by that is
like technical analysis reading the
charts and if you watch my channel for
any amount of time you know I’m I’m not
a really big believer in charts or
technical analysis at least for the long
term I do like to use them to help
establish price levels price trends
things like that which is of course what
we just looked at but what I think
matters more are fundamental reasons
fundamental drivers and they’re
typically the drivers of supply and
demand all right now I see three massive
catalysts that are converging right now
so let’s break each one of these down
and then I want to show you how this
little known tip how you can increase
profits by 60 to 80% by investing in
this oil and gas sector okay but first
the Catalyst let’s look at the first one
now you know economics it’s not that
hard really all prices are the
equilibrium of of supply and demand now
of course there’s millions of reasons
why the supply and millions of reasons
why the demand can change so let’s look
at a couple of those so let’s first look
at the supply for the last 5 to 10 years
investing in oil and gas has kind of
fallen out of favor for a few reasons
but primarily because of the rise of ESG
which has been pushed by CLA Schwab the
world economic Forum you know Black Rock
uh the bank of England and other NOS
like that now the goal of ESG has been
to stop using fossil fuels and move the
entire world over to what they call
Renewables I like to think of them as
unreliables these are things such as
wind and solar I call them unreliables
because they don’t work all the time if
it’s not sunny or if it’s not windy well
no energy and they’re certainly not
renewable because wind and solar both
have a lifespan of about 20 years and
they have to be replaced all right but
the goal of Black Rock You know the bank
of England all of these players and so
forth has been to starve fossil fuel
company of capital basically take away
the money that it takes to drill take
away drilling access and then make the
regulation so burdensome on these
companies that it basically puts them
out of business well when you do that
what do you think happens well all you
have to do is fast forward a few years
and you can see that no investment in
the space means less Supply less Supply
but what about the demand well it turns
out the trillions of dollars invested
into wind and solar could never would
never be able to replace what we need
oil for right so the demand hasn’t gone
away it has it hasn’t even stayed fixed
instead the demand has actually gone up
so this is supply and demand imbalance
number one now especially as we’re
seeing and fighting Wars across the
globe right now how do you think all the
carriers the Jets the tanks all the
weapons get to Russia and get to the
Ukraine battlefields or how about over
to the Middle East with the Red Sea yeah
lots of oil and now the US NATO Russia
China and everyone else they’re ramping
up their wartime economies to build even
more weapons and move even more troops
around and guess what that does yeah it
uses more oil so this pushes the demand
for oil and gas up even higher and you
know what else does this well it also
cuts off the supply since October of
2023 an ongoing campaign of drone and
missile attacks on commercial ships by
Yemen’s houthis have been aimed at
pressuring Israel to end its bombardment
of the Gaza Strip and ENT a fire there
have been no oil supply losses so far
but the shipping disruption is
indirectly tightening the market by
keeping 35 million barrels at Sea owing
to the longer Journey shippers have to
take to avoid the Red Sea now there’s
also the insurance War premiums and
they’ve gone up by five times from
$2,000 to
$10,000 as a result of this eruption so
when their costs go up what do you think
happens that’s right it goes up now that
was before the strikes of the US and
Britain that happened a few weeks ago
which then saw insurance premiums go up
to
$30,000 from one shipping Source now we
also see that Iran right now is
threatening to attack Israel and that
also means even more Supply disruption
and again supply and demand now the
second big Catalyst one I’m happy to see
one I I knew would finally come is the
death of ESG I always said that
eventually reality would smack him in
the face meaning that eventually we’re
all going to wake up to the fact that we
you know still need energy we still need
oil and gas and this is exactly what’s
been happening Black Rock which is the
largest asset manager in the world
they’re the largest Pusher of the ESG
investing narrative they basically
dropped them all they’ve shut down their
ESG funds for you know underperformance
uh they faced enormous backlash with
about half of the states in the US
pulling their pensions funds causing
Black Rock to lose billions of dollars
and they’ve seen many of these same
States pass laws outline ESG regulations
and black rock themselves have given up
even Larry Fink said that he doesn’t
even want to use the word ESG anymore so
what does this mean well it means that
investing in oil and gas they’re back in
fashion Now with uh many of my meetings
and my contacts and friends that are on
Wall Street and that institutions they
say that ESG isn’t even being mentioned
anymore so the push away from oil and
gas has reversed and now it’s game on
and then finally we also have inflation
inflation is Raging hard it’s not not
slowing down yes the CPI it’s stuck it’s
sticky but what I’m watching is the Us
and other countries they’re printing
money like crazy the US is adding $1
trillion dollar of debt almost every
quarter right now that’s the last
several quarters have been like that and
every quarter the US Treasury the
government has to revise how much they
have to borrow as a matter of fact last
quarter’s borrowing estimates were
revised up by over 40% that’s how far
they are now this means that they’re
spending money so fast they can’t even
keep up with how much they need to
borrow and this isn’t slowing down in
fact Biden is pushing for a 2025 budget
of 7.3 trillion now what does that even
mean well that’s 60% more money than we
spent in 20120 it’s 15% more than what
was projected for the year okay so now
you understand the catalysts that are
all forming to create this massive
inflation and you know my inflation
Playbook is buy scarce and buy energy
and ensive assets of course oil is an
energy intensive asset now I want to
show you how to play this um other than
just you know buying calls and then I
want to show you how to increase your
oil Investments by 60 to 80% with one
little tip okay now first how to play it
okay so first of all you can buy oil you
can buy oil directly you can you know
buy it directly with calls you can buy
through ETFs such as bno Uso UC there’s
so many others all right Uso is up 22%
year year to date UCO is up 34% year to
date because again in high inflation buy
scarce assets energy assets you can also
buy the big producers Exxon shell Etc
but if you want a much larger upside and
you want cash flow then you want to buy
the oil producers now real quick before
I go to show you how you can increase
investment returns by 60 to 80% by
buying oil producers I want to give you
a quick update on a sponsor in the oil
and gas sector because there’s big news
that could potentially affect this
company in a really big way now Prairie
operating company whose NASDAQ ticker is
p which is short for Prairie operating
is making big deals in one of the best
oil regions in the US and as we just
discussed oil’s been way under supplied
and the demand and the prices are
accelerating really fast so you put
undersupplied oil and increasing demand
and then you know what happens the price
goes up which is why I’m investing big
time right now into energy assets and
plays like this so you have government’s
printing money and put ping inflation
you have the ESG narrative dying you
have Wars breaking out restricting
Supply and increasing the demand at the
same time all while oil is still sitting
around its historic price and it’s
actually pretty low in adjusted for
inflation and today’s sponsor Prairie
operating company is drilling for oil on
some of the best areas for oil in the
United States and what I really like
about Prairie operating company is that
they’re doing all of this debt free now
why is this a big deal I talk about debt
all the time but for them it’s a big
deal because oil producers use a hug
huge amount of capital that has to be
financed and right now with the FED
fighting inflation rates are at an
all-time high so the cost of capital is
extremely expensive for companies having
to pay the debt service it’s also very
dangerous all right so I don’t want to
invest into companies that are dangerous
and it’s dangerous because one it adds a
lot of risk because they have to
continue to service the debt so if
anything happens to the company or the
price of oil were to drop they’d be in
big trouble and also the highest Debt
Service eats into their profits big time
the Prairie operating company they’re
able to break even on oil even at $30
which is unheard of most us producers
are in the $50 to $60 range which is
about double the price or half the
profits now Prairie is fully engineered
and proven reserves they have deep
inventory of drill ready permitted puds
and have a plan to recycle profits back
into drilling so they can get this
company gushing cash in fact their
projections are
75% irr or even higher now you know that
I love buying cash flow a rental real
estate project might have a cash flow of
like
0.05 but Prairie operating is projecting
a 2.3 projected cash flows from their
operations and this isn’t some small
private company that’s illiquid Prairie
operating is a NASDAQ listed company
whose ticker is p o and what I really
like in this company is returning the
profits to shareholders you see this is
typically done in a private Equity deal
and then the Lion Share of profits go to
the founders and the owners of the
private equity company but Prairie is
doing this through a publicly traded
company so the profits flow right back
to the shareholders along with the
dividends okay so that’s all I’m going
to say but you should check out their
presentation I’m going to link to it in
the show notes down below it’s worth
taking a look at okay now finally how do
you increase your returns by 60 to 80%
okay so what most people don’t know is
that the government is your partner now
the government have certain goals to
achieve and if you do what they want you
to do they give you incentive now some
people call these tax loopholes but
they’re not loopholes okay the
government puts them in place to
incentivize you to work with them and
guess what the government wants to
continue to have the US drill oil and
continue to lead the world in energy so
if you help them if you invest into oil
and gas then they give you incentives in
the form of tax breaks okay so here’s
the overview of how this works but
disclaimer I’m not a tax professional
and you should definitely seek the
advice of your own tax professional but
I do own part of an oil field I’ve been
investing into oil and gas for almost
two decades so this is how I do it okay
so oil and gas companies of course drill
for energy and they generate real cash
flow in the process and of course like I
said I love cash flow Investments and in
the course of drilling the oil companies
incur expenses we break these down into
two categories tangible and intangible
now tangible are real things right like
actual equipment um and this is uh
usually about 20 to 40% of an oil
company’s expenses and of course those
can be written off then we have
intangibles all right these are like
other types of expenses typically about
60 to 80% of an oil company’s expenses
and these are also tax deductible and as
an investor in an oil and gas company we
get a write off both types of expenses
so for example if I invest $100,000 into
an oil company I can usually write off
about 60 to $8,000 of my income against
the investment so this adds to it
compounds the returns that I get on the
investment and even if even if the
investment doesn’t make me a lot of
money I still get the tax writeoffs so
it’s a guarantee way to get returns that
way all right so to summarize this we
have high inflation leading to even more
money Printing and higher inflation we
want to fight inflation by buying scarce
assets and energy assets oil has a huge
supply demand imbalance because of
underinvestment from ESG guidelines that
are now over and the Investments are
coming back we have wars that are
causing the demand for oil to shoot
through the roof and then whether you
buy it directly through an ETF or
through a cash flow in producing company
that gives you huge tax incentives like
Prairie operating that’s up to you but
I’m a buyer here but let me know what
you think all right give me a thumbs up
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what I got to your success

In this video, I will break down the 3 BRUTAL TRUTHS behind the skyrocketing oil prices.

But don’t worry, this isn’t just a doom and gloom video about rising oil prices and global recessions… I am using this information to profit and I will show you how you can increase your own returns by 60-80%.

Watch till the end…

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