Matt Badiali is a rare personality to find in his field. His in-depth knowledge and expertise in energy, mining, as well as agricultural industries, is something to be awed. His education in geology has helped him navigate the world of oil including drilling and owning oil wells. His experience traversing the world on matters energy has helped Matt Badiali become a successful investor and advisor on natural resources. His advice on matters natural resources is something not to be taken for granted.
Mr. Matt Badiali has a lot to say on the sanctions on Donald Trump’s sanctions on Iran effective November 2018. According to Matt, Trump’s sanctions on Iran may seem to be working in the short-term but looking at it in the long-run the sanctions may have a ripple effect. Trump believes that the sanctions will not affect the price of oil but Matt Badiali differs. He believes that both oil consumers are entering a stage of oil uncertainty. Mr. Badiali also adds that there is a possibility the American oil consumers will feel the effects of these sanctions.
The sanctions target Iranian products, shipping companies, insurers, port operators, banks and other stakeholders which work with Iran. Trump’s administration has even threated to cut-off links with these international companies if they continue to transact with Iran. It is likely that most companies will comply with this directive owing to America’s large market.
The effect of these sanctions is not going to be experienced immediately as America has allowed eight countries to continue importing Iranian oil for the next six months. These countries include China, Greece, Turkey, Italy, Taiwan, India, Japan, and South Korea. Combined, these eight countries make up 75% of Iran’s oil exports. Therefore, these sanctions have little or no effect in the coming several months.
In June 2017, oil prices hit its two-year and again rose until October 2018 when it again plunged down 17 percent. This is due to the perceived plenty of oil supply. This supply can drop quickly when the six months accorded the eight countries expires. This will reduce the supply of oil by 900000 barrels. On the other hand, it should be noted that the demand for oil is increasing. According to the Energy Intelligent Group, demand for oil grew by 2.1 million. The difference between the increasing demand for oil and the gap that will be created by Iran’s sanctions in addition to Venezuela’s dropping oil production is huge. This means in the near future demand for oil will be higher and prices will soar.
About Matt Badiali
Matt is a geologist, investment advisor, and analyst. He is a holder of a Master’s degree in geology from the great Florida Atlantic University. He also holds a Ph.D. from the University of Carolina. He worked as a geologist until he discovered his passion in the finance industry. His experience as a scientist in natural resources has made him the best investment advisor in that sector.