How To Double Your Money On Crude Oil By July

Crude oil is coming into a period of seasonal strength right now – just like most of the stock market.

Even in a normal year, U.S. refineries would be getting ready for the summer driving season, which calls for a different, more expensive blend of gasoline that's in higher demand.

But this year, demand is going to be off the charts.

Authorities are really stepping up their coronavirus vaccination game. I saw someone getting vaccinated at a Home Depot garden center the other day, and restrictions are easing all over. That means a lot of the pent-up demand we've seen for travel and oil products is going to go through the roof. In fact, it already is.

And on top of all this, you've got the MV Ever Given. I wouldn't have believed it if I hadn't seen it!

When the Empire State Building-sized cargo ship spent most of last week stuck across the entire Suez Canal, it held up around 12% of daily global trade – $400 million an hour – including 1 million barrels of oil. Ever Given was freed earlier this week and normal heavy canal traffic is finally humming along, but the delay was enough to create some opportunities that'll take some time to play out.

With conditions like these, making some fast money on crude is going to be like shooting fish in a barrel. Here's how to do it…

Crude Oil Hasn't Been This Bullish in Years

Let's take a look at this screengrab of my 100-day United States Oil Fund LP (NYSEArca: USO) chart. USO is an "optionable" exchange-traded fund (ETF) that tracks the price of West Texas Intermediate (WTI) Light Sweet Crude oil. It's not necessarily the best way to play oil right now – I'll show you that in a second – but it is the easiest way to track price and liquidity.

The chart tells the story of crude oil recovering from its October 2020 lows – not as bad as last April, when it went negative, but still really low. It starts to break out again in late December when the first vaccines hit the street and investors started looking forward to the kinds of increased economic activity that ending the pandemic could bring.

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