| The outlook for industrial metals like copper appears bright. One reason is the growing push toward renewable energies. The steep fall in the costs of renewable energies, especially solar, has made them viable alternatives to fossil fuels. That might seem to make oil, so long in the doghouse, the odd man out when it comes to major commodities.
It's getting harder to find a bullish view on oil. In its latest report, the International Energy Agency again lowered its projections for oil demand. At the same time, additional supply from Libya, after a long war, is coming onstream. Reduced demand, increased supply, and a major tilt to renewable energies would seem to all but preclude a sustained rebound in oil. Down But Not Out I readily admit that contrarianism on its own is a weak argument. But if there is any basis for the contrarian thesis, it's that it can lead to surprises, which in this case could result in the kind of shock that would send oil flying.
Contrarian arguments can be found on both sides of the fence: unexpected increases in demand and sharp long-term drops in supply. The demand side might seem the most problematic. But economic growth will likely start accelerating in 2021 and will be led by the developing world for some time. Rapid growth in developing countries goes hand in hand with rising demand for commodities, including oil. The World Still Needs Oil Ethylene, propylene, and xylene are just three of the petrochemicals we'll need a lot of to build out a renewable future. The need for petrochemicals especially in the developing world (and don't forget, for the next decade internal combustion engine cars still will be rising in numbers) should mean growing demand for oil for at least the next decade.
As for supply, despite more oil from Libya and possibly from Iraq, less U.S. supply and limited budgets of oil companies suggest supply will struggle to stay at current levels and probably will decline. China, which during the past pandemic-wracked year imported record amounts of oil, will be the biggest oil distributor in the next decade. As the world recovers from the 2020 pandemic, as I mention above commodities, renewable energies, and developing countries look poised to outperform. Investors who follow a more traditional way of investing (namely, mimicking the S&P 500) may want to think of adjusting portfolio weightings. Specific, actionable advice... I've just revealed broad investment strategies for 2021. But if you're looking for specific money-making moves to make, sign up for our 2021 Profits Mastermind roundtable. To create this special event, our editorial director Jon Persinos interviewed Investing Daily's team of chief investment strategists, including me. He got us to reveal our top profit opportunities which could arise from a Biden presidency; "must-own" stocks for 2021; our most contrarian, "shoot-for-the-moon" stock picks; and much more. We're airing the event in its entirety on December 18 at 2:00 p.m. Eastern Time. Don't miss out. In this comprehensive interview, our top experts reveal specific investments that are compelling buys for 2021. You especially don't want to miss our "shoot-for-the-moon" stock picks, which are positioned to crush the broader market. To reserve your spot and gain access to the full-length Profits Mastermind roundtable, sign up here. | 
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