The Best Way to Play Rising Crude Prices

Andy Snyder|July 7, 2021

The price of oil is surging. It has hit highs we haven’t seen in years.

Go figure.

Just as rising consumer prices pinch the nation’s wallet… the price of the stuff that goes into nearly everything we use surges even higher.

The conspiracy-minded folks are having fun with it all.

They’re saying that President Biden is forcing crude prices up to push his green energy deal.

They’re spreading rumors that rising prices are thanks to American forces finally leaving Afghanistan.

And they’re saying that prices are being raised as a backhanded way to slow the overheating and cash-stuffed American economy, with the Fed behind it all.

All these ideas have at least a kernel of logic buried in them. But they also have major flaws.

Biden, for sure, isn’t excited about rising crude prices. His team of anti-oilers are surely digging their toes into the ground, pouting like children who don’t want to go to church.

It means the free market will do what Biden and his team would much rather do themselves through taxes, handouts and the force of law.

As crude prices rise, there’s no need to tax and penalize the “dirty buggers” who burn oil. There’s no need for a carbon tax… electric vehicle subsidies… or a whole mess of other disincentives.

It’s hell for the crowd who wants to control it all.

It means, much to the dismay of Big Government, that there’s no need to fire up another free-money subsidy or the sloth-like bureaucracy it takes to run one.

There’s no need for Washington to artificially jack up prices and pick the winners and the losers.

Their greedy pals at OPEC have already done it.

Our Saving Grace

We say thank goodness for rising oil prices. They’ll save us from a boondoggle for the ages… a heavy-handed, market-busting scheme that would have artificially reshaped the economy for generations.

Even better… it pulls some ideal investment opportunities out from under the fat thumb of the government.

Take the electric vehicle market, for instance.

It’s hotter than it’s ever been. As it should be. The technology is gaining momentum every day.

For instance, we’ve been studying a small company that’s about to IPO. Its car can go more than 500 miles on a single charge and boasts 800 horsepower.

That’s incredible. It pops the doors off anything Tesla is building.

When oil is cheap, the technology doesn’t make a whole lot of economic sense, though. The wise folks in D.C. have tried to subsidize their way around the problem for decades. We remember touring a “green” power plant in 2006 and talking about the same issue.

But as oil prices rise, the economics change quickly.

It creates an ideal buying opportunity for folks who have wanted to play the electric vehicle craze but rightly feared buying into a market that hinged on the whims of the government.

As crude prices surge, shares of companies related to the EV market will zoom higher. The opportunity there is far greater than any in the energy sector – where most of the media’s attention will go over the next few weeks.

Even better, the EV sector is safer.

If OPEC opens its spigots and dumps crude into the market, EV stocks won’t take nearly the hit that oil companies will. Once their revenue stream is established, it will remain in place. With each new spike in prices, more cars will hit the streets. And the more cars that hit the streets, the stronger and more enduring the market will become.

And it will – and must – happen without the aid of more free-money subsidies.

Bottom line… if you’re looking to play one of the hottest sectors of the market, now’s the time to get in.