An Insight by Matt Badiali that Oil Prices Will Significantly Increase

Matt Badiali started his career as a scientist, but later in the year 2014, joined the finance industry. He established Real Wealth Strategist, his first newsletter in May 2017. The Matt’s newsletter has gained many readers who benefit from numerous natural resource stock recommendations and advisory contained in the publication. Matt has incorporated his vast Geology and Science knowledge into analyzing the existing oil markets.

According to Matt Badiali, the variations in the geopolitical environment eventually impact the oil prices across the world. Political tensions disrupt the exportation of oil products, a factor that makes the cost of locally made crude plummets to increase. The world has experienced a stable and affordable oil production since 2014. However, Badiali believes that there exist some factors which will eventually send the prices skyrocketing. Investors who are willing to enter into the oil market could finally enjoy significant gains if some of the factors become a reality.

Competitive future oil contracts

The stability of the United States dollar has enabled it to dominate the energy since 1944. Additionally, all major oil exporting nations sell their contracts in U.S dollars. As per Matt Badiali, a bigger percentage of countries are in support of the status quo of the U.S dollar, except for China which is about to release a new exchange, whereby future contracts will be Yuan-denominated. The China exchange, according to the Shanghai Free Trade Zone, will give market participants a platform to buy and sell oil contracts. Matt recommends that investors willing to prosper in the recent oil markets should closely monitor China’s new exchange.

Venezuela’s Crisis

The severe financial crisis has consumed and destroyed Venezuela’s economy in all sectors. Inflation levels have increased, thus making foreign investors to pull out of Venezuela. Oil production market in Venezuela has also been surprised by the prevailing economic woes. Oil production levels have significantly reduced from 3 million barrels per day in 1997 to 1.4 million barrels per day. Production of oil could fall even lower if the crisis in Venezuela continues. Matt Badiali is encouraging investors to monitor the crisis in the nation carefully. Venezuela continues to export the small amount of oil that they produce. Investors should closely monitor the rise in prices of oil as oil exports of Venezuela reduce.

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