Why is WTI up today? - Apr 1

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Breaking: Russian Oil Collapse Sending Oil to $100 a Barrel
JEFF SIEGEL | APR 01, 2024
Are you ready for $100 oil?

J.P. Morgan is.

According to analysts from the behemoth investment bank boasting assets in excess of $2.5 trillion, Brent crude is heading back to $100 a barrel this year if countermeasures to balance Russia’s production cut don’t happen.

In a recently uncovered investment note, J.P. Morgan’s head of global commodities strategy, Natasha Kaneva, wrote the following:

"The shift in Russia’s strategy is surprising. At face value, and assuming no policy, supply or demand response, Russia’s actions could push Brent oil price to $90 already in April, reach mid-$90 by May and close to $100 in September, keeping pressure on the U.S. administration in the run-up to elections."

Shortly after that note, we got word that recent attacks on Russian oil refineries have resulted in a 7.4% decrease in production.

Meanwhile, we’re also hearing there are months-long delays on payments to Russian oil firms. As reported in Reuters, Russian oil firms are now facing delays of up to several months to be paid for crude and fuel as banks in China, Turkey and the United Arab Emirates (UAE) become more wary of U.S. secondary sanctions.

"Several banks in China, the UAE and Turkey have boosted their sanctions compliance requirements in recent weeks, resulting in delays or even the rejection of money transfers to Moscow, according to the eight banking and trading sources.

Banks, cautious of the U.S. secondary sanctions, started to ask their clients to provide written guarantees that no person or entity from the U.S. SDN (Special Designated Nationals) list is involved in a deal or is a beneficiary of a payment."

Interestingly, our in-house oil & gas guru, Keith Kohl, actually predicted this very thing earlier this month.

Here’s what happened following that prediction: Brent has gained $15/bbl

And we still haven’t reached $90 a barrel yet. But make no mistake: it’s right around the corner.

Which is why Keith just released a new update on his initial oil price prediction of $100 a barrel, writing …

“Due to the convergence of three powerful economic triggers, I believe we’re on the cusp of a multi-year bull market in oil.

Not only will crude oil prices soar, but my research indicates they will not come back down for years.

Most Americans will be blindsided as prices for fuel and everyday goods reach unprecedented heights. But for smart investors who know what to do, this is a rare opportunity. That’s why I’ve recorded this urgent briefing today.”

You can listen to that briefing here.

Or you can just read the transcript here.

Full disclosure: I’ve personally been benefiting from Keith’s oil price analysis, and I will continue to do so.

I would encourage you to do the same.

To a new way of life and a new generation of wealth...

Jeff Siegel
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Keith Kohl writes the "Energy Investor" newsletter, which I subscribe to.