Matt Badiali works at Banyan Hill Publishing as a financial newsletter writer and editor. His educational and professional background is in the earth sciences which makes him uniquely suitable to write about investment opportunities in the world of natural resources. He entered the financial field in 2004 when he became an analyst and editor at Stansberry & Associates. He joined Banyan Hill Publishing in early 2017.
Like a lot of people, Matt Badiali has been keeping his eye on the price of oil recently. In just a few short months the value of a barrel of oil has toppled from north of $86 a barrel around $55. Matt Badiali says the reason for this is that there is simply too much oil in the world. Some traders thought that there wouldn’t be as much oil in the market as the sanctions were reimposed on Iran. As it turns out Donald Trump claiming he was going to get tough with Iran was even remotely true. It was a whole lot of talk with no teeth to it.
Iran is still able to sell its oil to China, India, Japan, Turkey, South Korea, Italy, Greece, and Taiwan. Those markets account for 75 percent of the oil Iran exports. The sanctions are just suggestions, as it turns out, and so nobody cares about them. Even worse, some of the countries hadn’t imported Iran’s oil in quite a while but they are now.
It’s possible the amount of oil on the market will decline, Matt Badiali has stated. He wrote in an article that Venezuela had been exporting 1.8 million barrels a day but in just one year that has declined to 1.2 million barrels. He expects this number to drop further.
Demand for oil has been going up as well which will reduce the available supply. Matt Badiali says that since the start of the year the amount of daily demand for oil has gone up by 2.1 million barrels a day. Supply is keeping up for now but Saudi Arabia announced they were cutting how much oil they export which will likely drive prices higher in due course.
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