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Want to make $100,000 in just seven days? It might sound impossible, but that’s exactly the kind of opportunity the oil market delivered earlier this year, and the big question now is: Could this be your second chance?
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When conflict erupted in the Middle East, crude oil exploded by more than 70 per cent in just six trading days. That means a $7,000 investment, managed with a professional 5 per cent stop-loss, had the potential to grow to more than $100,000. Opportunities like that don’t come around often, but when they do, they can completely change your life. So, here’s why I’m talking to you about oil today.
History shows that whenever major conflicts threaten global oil supplies, crude has a habit of making rapid moves towards US$100 to US$110 a barrel. We saw it during the CY08 commodity boom, again in 2011–12 during the Arab Spring and sanctions on Iran, and in CY22 after Russia invaded Ukraine.
Right now, oil has almost completely erased its recent war rally and is trading back near US$70 a barrel. Beneath the surface, many of the same risks that triggered the last explosive move are starting to build again.
This week, President Trump declared the ceasefire arrangement with Iran effectively over after renewed attacks on commercial vessels in the Strait of Hormuz.
The United States responded with strikes on more than 80 Iranian targets, while reports suggest Kharg Island, through which most of Iran’s oil exports pass, could become a future military target.
Unsurprisingly, traders immediately began pricing in the increased geopolitical risk.
At the same time, the U.S. Strategic Petroleum Reserve remains near its lowest level since the early 1980s, leaving less emergency supply available if disruptions worsen. Russia is also continuing to battle refinery disruptions and attacks on energy infrastructure, keeping global supply far tighter than many investors realise.
Now, none of this means oil is guaranteed to surge back to US$100. Markets never make promises but if you’re serious about finding high-probability opportunities before everyone else, this is one market that deserves to be on your radar. The biggest mistake isn’t missing the first rally; it’s watching the next one unfold while you’re still thinking about the last.
Keep oil on your watchlist and watch the chart. Let price confirm the story before risking your hard-earned money, and remember this.
Earlier this year, the entire move happened in less than a week. If another opportunity emerges, time won’t be your friend. The traders who are prepared before the move starts are usually the ones who benefit the most.
Good luck and good trading.
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Dale Gillham is Chief Analyst at Wealth Within and an international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au.
Disclaimer: While Wealth Within holds an Australian Financial Services License (AFSL:226347), the information featured in this program is general in nature and therefore should not be relied upon. Before making any investment decisions, you should consult a licensed professional who can advise whether your investment decisions are appropriate for you.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
