One of Casey Research’s biggest calls this year is paying off…

In early August, E.B. Tucker, editor of The Casey Report, told subscribers how to profit from the world’s oversupply of oil.

If you read financial newspapers for more than a week, you’ll notice that global oil production is near record highs. Last year, global oil output reached its highest level in at least twenty-five years, according to the U.S. Energy Information Administration (EIA).

High oil prices were a big reason for the surge in production. Between 2011 and mid-2014, the price of oil hovered around $90/barrel. But oil peaked at $106 last June, and it’s been falling ever since. Today, a barrel of oil goes for about $45.

Even though the price of oil has been cut in half, global oil production is still near all-time highs. The Organization of the Petroleum Exporting Countries (OPEC), a cartel of 12 oil-producing nations, is still pumping a record amount of oil. And it plans to increase production next year. In the

U.S., oil supplies are still about 100 million barrels above their five-year average.

E.B. explains why some countries have no choice but to keep pumping oil:

Oil is the foundation of many countries’ economies. Take Venezuela, for example. Venezuela produces over 2.5 million barrels-per-day (BPD) of oil.

Oil exports make up half of the country’s economic output. The country is so dependent on oil that cutting production would be economic suicide.

This is happening across the globe. Giant state-run oil companies continue to pump because it’s the only way for these countries to make money.

This is why global oil production has not fallen even though the price of oil has been cut in half. In many areas, production has actually increased.

•  The extra oil has weighed on oil prices…

Weak oil prices have hammered virtually all oil companies…including the biggest oil companies on the planet.

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