Matt Badiali Explains Why Oil Prices Declined and Why They Will Soon be Moving Back UpNovember 27, 2018 - Author: steph
A well-known expert when it comes to making money from natural resources, Matt Badiali is one of Banyan Hill Publishing’s senior research analysts. He has been working in the financial industry for over a decade and has an educational background in geology including a master’s degree and almost completing a Ph.D.
He says that oil was on its way to $100 when a few things happened that caused it to precipitously decline since September. The peak oil price was nearly $80 that month and it declined to nearly $54 a barrel before starting to move up.
Matt Badiali says one of the big factors for this decline was that the stock markets having huge declines spilled over into commodities as well. If the economy starts to not do well then the demand for oil naturally declines. Also, the Trump administration handed out some get-out-of-jail-free cards. He claimed that he was cracking down on Iran but as it turns out that wasn’t quite the case. Temporary waivers have been given to all of Iran’s major oil-buying nations which is a pretty soft approach.
He says this approach makes sense because if the U.S. had prevented all oil from coming out of Iran than taking all that oil off the market would have shot oil prices way up. The Trump administration is trying to keep gas prices reasonable so oil going way up would have not met that goal.
Matt Badiali says that Saudi Arabia and Texas have started producing massive amounts of oil so there is now a worldwide glut of oil. He called the production of Texas oil production astonishing in its scope. He called it uncharted territory.
However, Matt Badiali is in agreement with other experts that oil is now oversold. There hasn’t been any decline in demand and Saudi Arabia is pledging to cut the amount of oil they are exporting. This will over time lead to a better balance of supply versus demand. He sees oil prices as moving up and could hit $80 a barrel of Brent crude by the end of 2018.
His Facebook Page: https://www.facebook.com/MattBadialiGuru/