How Market Timing Gives You The Critical Edge

The Market Timing Report

- Andrew Pancholi

I want to share a significant opportunity for profit that has just crossed my desk from the research and analysis we do here at the Market Timing Report.

This opportunity is buried in a few lines of the Omnibus Spending Bill which was passed in the US in December 2015.

In case you aren't familiar, that bill allowed oil producers in the US to sell their oil to anyone in the world increasing competition and lowering the global oil price for everyone.

Since the time of that bill passing, the United States has grown to become one of the largest producers of oil in the world at 18,875,000 million barrels per day.

That's pretty surprising considering you might think that the UAE or Iraq is the largest?

But instead, it's the United States. In fact, the US produces more oil than Iraq, Iran and the UAE combined.

But the US politicians were uncharacteristically smart in this spending bill. They know that if oil prices got too high, their chance of re-election drops and the chances of the US going into recession skyrockets. If those things happen - chances are... they aren't getting re-elected.

So they put a kill switch in the bill. The President, at any time and without authorization of Congress, can ban all oil exports if the price of oil gets too high. The largest oil producer could take all their oil off the market and only sell internally to the United States.

The average gas price in the United States just crossed $5 per gallon. I suspect the US consumer won't take much more of this. The chances that President Biden uses this executive power to ban all export and reduce gas prices is growing by the day.

If the largest oil producer takes all the oil off the global market and the second largest oil producer (Russia) is incrementally being shut off from the global oil market because of the war in Ukraine...what happens to the oil price?