Matt Badiali Sheds Light On The Looming Spike In Oil Prices Due To Iranian Oil Crisis

September 9, 2018

As per Matt Badiali, people ought to brace themselves for a possible rise in oil prices in the wake of the Iranian oil crisis.

This year, it is virtually inevitable that the cost of oil will shoot this coming fall. The United States pulled out of a trade pact they signed with Iran in 2015, allowing the Middle Eastern country to export oil to other states. Now, the U.S has decided to put trade sanctions back on starting this November.

These sanctions are significant to Iran because the country alone managed to import more than 2.2 million oil barrels everyday in July. That more oil than Russia, Saudi Arabia and the United States can produce.

Nothing Can Hardly Go Wrong with Oil

Speculators see no looming danger in oil markets. In fact, countries like China refuse to heed to the U.S embargo, and continue to import Iranian oil. China imported 806,000 barrels in July from 450,000 barrels imported in January this year.

Due to the competition of this essential resource, Iranian oil supply will fall, forcing countries like Japan, South Korea and United Arab Emirates to make up for the short fall by importing from U.S.

That alone is not a reason for the prices to go up because there are more than 900,000 barrels in surplus in market currently. It means the situation can hardly take a plunge. Venezuela’s supply cannot plummet any further. Also, there can’t be negative disruptions ion Nigeria or Libya. Hence, if everything go right, oil prices are expected to remain steady for a considerable while.

Unexpectedly, that the notion with most speculators. According to Commitment of Traders Survey by Commodities Futures Trading Council, speculators are most bearish about oil prices since 2016. And they were wrong then. That’s why Mr. Badiali is advocating for people to invest in Platinum Hedge Fund.

About Matt Badiali

Matt Badiali is a graduate from the Penn State University with a degree in Sciences; a Master’s Degree in Geology from Florida Atlantic University and a PhD Degree from North Carolina University.

In 2004, he entered the financial industry, and through combining his expertise in science and finance, Matt Badiali has advised many entrepreneurs who are now managing successful investments.

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