Recent Geopolitical Events Mean Some Major Movement in Oil
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Recent Geopolitical Events Mean Some Major Movement in Oil

by | published January 19th, 2020
Editor’s Note: We hope you enjoy this recurring Sunday feature, where we offer an inside look at some of Kent’s elite services. Energy Inner Circle readers first saw this recommendation on January 3.

Action to Take: Buy an April 2020ProShares UltraShort Bloomberg Crude Oil (SCO) $12 put (SCO200417P00012000). Use a $2.10 buy limit order good until filled.

Let it never be said that events in the Persian Gulf don’t throw monkey wrenches into my foreign meetings with members of my global contact network.

The U.S. air strike that killed Iranian General Qasem Soleimani has resulted in our scrapping much of the accepted agenda for a new one based on what we used to call RRI (“rapid response intel”) from my intelligence days.

That, and running up large phone bills to sources in the Middle East, Europe, and even Asia.

When the dust settles next week, I hope to relate what has been going on in these sessions, or at least what can be circulated publicly.

But for now, an immediate move is advised.

My instructions today are to buy an April 2020 ProShares UltraShort Bloomberg Crude Oil (SCO) $12 put (SCO200417P00012000). Use a $2.10 buy limit order good until filled. The $12 strike price is just at the current break lines for In The Money (ITM).

Remember, SCO is a bear fund that rises higher than the underlying market when oil declines. That means a put option will increase disproportionately when the underlying oil price increases. The current uncertainty following the American attack and the certainty of an Iranian reprisal is likely to raise the floor for oil prices moving forward for much of the next month or so.

There is much underway in international energy investment circles that will provide us some choice plays in short order, so stay tuned for more.

Action to Take: Buy an April 2020ProShares UltraShort Bloomberg Crude Oil (SCO) $12 put (SCO200417P00012000). Use a $2.10 buy limit order good until filled.

Sincerely,

Kent Moors

P.S. As we’ve discussed before, China will do anything to protect its economic interests. That includes potentially going to war with anyone that threatens those interests. We’ve seen a massive military buildup in the disputed South China Sea in recent years, with China challenging anyone that dares to cross the airspace – even the United States Navy.The Chinese have an alarming superweapon – known as the Assassin’s Mace – that they believe is capable of defeating even the formidable U.S. Navy. But they couldn’t possibly be more wrong.

Thanks in part to a small $6 defense contractor with a top-secret technology, the Pentagon has an ingenious new checkmate move designed to stop a Chinese sneak attack dead in its tracks.

This critical contractor is expected to skyrocket exponentially once this story goes mainstream, and I do not want you to miss out. Frankly, you need to see this before it’s too late…

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