Matt Badiali is a geologist, having an impressive academic record, graduating from Penn State University with a Bachelor of Science degree in Geosciences. In addition, he attended Florida Atlantic University earning a Masters degree in Geology, and University of North Carolina. He became a successful investor after the market crash in 2008, and is well known for introducing the public to the concept of Freedom Checks. Matt Badiali noted that oil prices are bound to get higher in the fall of 2018, due to the fact that the United States pulled out of the agreement with Iran made in 2015, which allowed the country to export their oil to other countries. In addition, the United Stated placed sanctions on Iran, which are expected to be in place by November.
Mr. Badiali mentions that the timing of these sanctions is bad. Venezuela is collapsing, which also means that their oil production is decreasing by the month. Once Iran can no longer export crude oil either, Matt Badiali predicts that the market will become tighter. According to Bloomberg, despite the sanctions, China refused to comply and continued to import oil from Iran, and even increased their oil imports in January of 2018 to 806,000 barrels from 450,000. Both the U.S. and China are in a trade war, and some experts say that the economy could suffer if the trade war goes on for too long.
Matt Badiali believes that China is able to sabotage American operations in Iran, and are actively doing that. The fact that they are importing more oil could obstruct the plans made by the United States. If the prices of crude oil do not remain where they currently are, Mr. Badiali declares that the prices will become volatile and will increase to their highest levels. Speculators agree with Mr. Badiali’s opinion, as they have not been bearish when it comes to oil ever since 2016. In his newsletter, Real Wealth Strategist, Matt Badiali is long on oil. He mentions that if oil prices will rise it means everything will end up costing more, which puts consumer in a losing position.