In August 2018, Matt Badiali, a veteran global energy expert cautioned consumers that the prices of oil were likely to rise as from November 2018. As stated by the investment expert, US citizens should also anticipate harsh economic times since the prices of oil had a direct impact on the cost of living.
Why should the consumer anticipate increased oil prices?
Matt Badiali claims that US’ withdrawal from Iran’s 2015 business deal is the principal reason behind his statement. According to Mr. Badiali, the global market will lose millions of gallons of oil given that Iran is one of the chief exporters. Besides the sanction, Matt Badiali claims that oil production was decreasing in Venezuela, another primary exporter. Using his geology and investment prowess, the expert concludes that the supply of oil will subside while the demand will get tighter than it was in the previous months.
What would be the repercussions of the high oil prices?
The price of oil has a direct impact on the cost of living. On that account, consumers should be ready to welcome a high cost of living. Also, the former geology lecturer at the University of North Carolina contends that some businesses will close down since they might not cope with the added costs. Quite the opposite, the hike in oil prices will open a lucrative investment opportunity for savvy investors. If the US manages to kick Iran out of the oil trade, the global market will need other investors to occupy the gap.
Is there a way out of the increased oil prices?
Upholding Iran’s 2015 deal would be the only way to avoid the upsurge in oil prices and its economic implications. However, Mr. Badiali says that the US government has no plans to withdraw the sanctions. Hence, consumers should get ready for the rough economic period.
What is the likelihood of the anticipations coming true?
Ideally, nobody is sure of the energy market’s financial future. However, there is a high likelihood that the market will destabilize if Iran exits. Matt Badiali’s postulations may not go amiss since he has decades of experience in the investment industry. Furthermore, the expert has a reliable scholastic background in geology and earth sciences.