The last bearish overhang for crude — Venezuela — is now gone. Why one trader says oil will follow in gold’s footsteps.

Core Viewpoint - Underinvestment in the energy sector is a significant reason to invest in oil, with expectations of price recovery due to supply/demand imbalances and geopolitical factors [1][2][4]. Group 1: Oil Price Forecasts - The average forecast for oil prices is $58 per barrel for 2026, reflecting a supply/demand imbalance [1]. - Josef Schachter predicts crude oil will reach $80 per barrel this year, driven by demand from non-OECD countries and the transition to green energy requiring more fossil fuels [7]. Group 2: Investment Opportunities - Kevin Muir suggests that the current geopolitical climate, particularly the American takeover of Venezuela, presents a buying opportunity for oil [2][3]. - Muir's previous advice to invest in gold miners has proven successful, with one ETF rising 157% over the past year, indicating potential for similar gains in oil investments [5]. Group 3: Market Dynamics - The cycle of oil prices typically begins with low prices leading to reduced investment, followed by a gradual rise as the market adjusts to the underinvestment, ultimately resulting in a price squeeze as short sellers are forced to cover their positions [4]. - Muir emphasizes that global growth is expected to surprise positively, suggesting that oil prices will likely follow the upward trend seen in other commodities like gold, silver, and copper [8].