Reasons Behind the Skyrocketing Oil Prices – Matt Badiali

     In just two and half years, the West Texas Intermediate (WTI) crude oil price, the United States benchmark hit its highest price ever with the cost per 42-gallon barrel ranging between $54.30 and $55.14 in November 2017 alone. It is therefore imperative for investors to be aware of the causes of this trend just in case they decide to include some oil producers in their portfolio.

On November 7, 2017, Matt Badiali offered his insights on the reasons behind the rising oil prices. Matt partly attributes the increasing oil prices to the constant barraging of production cut-rhetoric by Saudi Arabia. During the last couple of weeks, Saudi Arabia appeared to be on a publicity blitz making sure that everyone who cared to listen was made aware of the fact that OPEC is not doing away with the production cuts anytime soon. This resulted in the increase of oil prices to as high as $55.64 per 42-gallon barrel.

However, the increasing oil prices go beyond mere talk. Its effects are witnessed or felt in areas such as the rise of the demand for the United States distillate and the partially refined oil. During the entire first half of the year, exports to Europe grew with the figures being significantly high in May, June, and July.

Besides the distillate going to Europe during the first part of the year, the quantities exported (from the US) to Central America, South America, and Mexico was much higher this summer compared to last year. In October specifically, a massive proportion of these barrels went to Netherlands, Brazil and Mexico – 102,000, 183,000 and 228,000 barrels per day consecutively. Matt argued that the enormous demand is a good indication that there isn’t a better time to purchase oil companies than now.

About Matt Badiali

Matt Badiali is a holder of Bachelor of Science in Earth Sciences obtained from Penn State University. He earned his Masters in Geology at Florida Atlantic University. He uses his knowledge as a geologist and the training he has received on matters concerning investments, to unearth tremendous profits. Before joining Banyan Hill, Matt Badiali worked as a geologist for a drilling firm and also offered consultancy services to an environmental enterprise.

Thanks to his work, Matt has traveled to many different parts of the world including Hong Kong, Turkey, Haiti, Papua New Guinea, Singapore and Switzerland among many others. Matt has had the privilege of visiting many oil wells and mines all over the world. He uses these visits to interact and interrogate chief executive officers about their resource prospects, and also analyze all types of geological data.