Oil prices are about to hit the skids. A $20 drop per barrel is not just possible… it’s likely.
If you own a single oil stock, you should read my warning below.
But if you want to profit from the coming fall in oil prices, you MUST read on—our strategy will hand you fast profits of 20%.
The tragic earthquake and tsunami has ground Japan’s economy to a screeching halt. Given that oil accounts for 45% of the island nation’s energy needs and that it’s the second-largest importer of oil in the world, you can bet oil supplies will stack up and prices will buckle.
Big Oil insiders—refiners, producers, drillers, you name it!—are selling crude futures hand over fist. Commercials are net short an astonishing 310,000 contracts right now. That’s a record—the old record for short contracts was just 200,000!
Crude inventories just surpassed their highest level since 2004. High gas prices are forcing consumers and businesses to cut back on driving, so there are now 355.7 million barrels of oil stockpiled in the U.S.—and imports are still flooding in.