Matt Badiali has warned investors. Higher oil prices are on their way. Hopefully, ears are pricked up. Former Geology professor turned alternative-commodity guru, Matt Badiali, is not someone to ignore when it comes to natural resource commodity prognosticating.
A detail man, who uses scientific savvy and fiscal scrutiny to study the markets, pulling his data directly from the source, Matt Badiali has been known to investigate the amount of time it takes for a drill team to execute a hole. Since drilling often constitutes the biggest expense for natural resource companies, Badiali asserts that smoothness in the drilling part of the operation leads to overall company health.
Not one to take his mission lightly, the writer behind Banyan Hill’s much-lauded, “Real Wealth Strategist,” refuses to take trend-talk on faith alone, traveling to distant outposts, including Singapore, Iraq, Switzerland and Haiti to get the inside scoop for his readers.
The uptick in crude oil prices should hit in autumn, according to Badiali, who’s made note of several political factors, all converging to affect oil. A 2015 trade agreement, for example, allowing Iran to trade with other countries was recently pulled out of by the U.S., which furthermore took the additional step of levying sanctions on the Middle Eastern country.
In terms of supply and demand for crude oil, the sanctions are not coming at an optimal time, according to Matt Badiali. While oil demand is on the rise, one exporting country is experiencing major instability, specifically Venezuela. Should Iran falter in their ability to export crude oil as well the market can be expected to tighten exponentially.
Meanwhile, China is continuing to export half a million plus barrels of crude oil a day from Iran, adding a murky finger into this economic stew. Currently a major importer of crude U.S. oil, China could change that. Other nations are busily importing oil from the Middle Eastern country too. But, Badiali warns that minus Iranian crude oil the market can expect increased vulnerability. Gasoline buyers may well be grumbling soon. But, for crude oil investors, Badiali’s final word of advice is to go long.