Matt Badiali spent much of his life studying and training to become a geologist until a friend of his discovered that he possessed a true potential in finance. Today, Mr. Badiali is a financial analyst who puts his background as a geologist to good use by specializing in resource stocks. His many years as a geologist taught him the specifics of what makes a resource company valuable. He traveled all over the world to examine mines and oil wells. He met with top executives from many companies who showed him geological data, as well as helped him to understand how the company operated. Today he can analyze resource companies and choose whether a company can be a profitable stock pick for an investor.
Matt Badiali believes that there are current developments that could affect the price of oil and investors should remain wary of how things could play out. The United States terminated the Iran nuclear deal and put sanctions back on Iran. These sanctions should begin to affect Iran in November. Matt Badiali pointed out that these sanctions will make it harder for Iran to export its oil. Iran provides the global oil market with two million barrels of oil daily and that amount of oil is not easy to replace. This could cause a shock to the oil market if the supply ends up not being met.
Matt Badiali acknowledges that China and other countries may help to prevent the oil prices from going up higher. China has stepped up and plans to ignore any sanctions that the United States will put on Iran. China is more than willing to accept oil from Iran, especially since China has seen the amount of oil it imports greatly increase from the beginning of this year. Due to the escalating trade war taking place between China and the United States, China also sees this to undermine the United States. China could also stop accepting oil from the United States. Other countries have stood with China and plan to accept Iranian oil because they disagree with the United States for ending the agreement.