In the Chart of the Day below, Andrew Mickey argues that $120 oil is “just the start,” partly as a result of what’s happening with Russia. What you should also know is that Andrew saw $120 oil coming well before anyone else. In fact, he called for it nearly six months ago.

In late fall of last year, he said flat-out and on the record, “I’m telling my readers to look for oil at $120 a barrel.” You don’t get much more spot on than that — especially considering what other pundits were saying at the time.

OPEC hogs the headlines, but Russia is truly the wild card in oil prices these days. As you can see in the chart, this wild card is set to push oil prices even higher in the future.

Russia was aggressively searching for new oil between 1930 and 1990. The fall of communism, however, brought the fall of oil exploration, too. As a result, Russia is not finding any new oil.

The situation is already pretty bad, and it’s only getting worse. At the current rate new oil discoveries are being made, total reserves of the world’s second-largest oil producer could be cut in half by 2030. Meanwhile, production could be slashed by 75%.

You can bet $120 oil is just the start for the long term. Russia’s position as the dominant non-OPEC oil producer, and the dreadful state of its oil future, is only going to help push oil prices to the next level.

Economic growth in China, India and Brazil has been unfazed by the downturn in the U.S. And their thirst for oil is as strong as ever. Vladimir Putin and Russia will only become bigger players on the world stage in the process.

It’s going to get very scary in the years ahead as the Russia factor grows strong. Prudent investors are already taking action. Learn how to turn Putin’s power grab and mismanagement of the Russian oil machine into profits.

Good investing,

Andrew Mickey
Editor in Chief, BreakAway Investor