Many Americans have been getting a little worried about gas prices, as they have been slowly creeping up. Matt Badiali is a financial expert who specializes in natural resources and he believes that Americans are going to feel even more pain soon at the pump. He feels that oil prices are going to rise since the United States terminated the Iran nuclear deal. Matt Badiali spent twenty years of his life studying and working as a geologist. He traveled all over the world examining natural resource assets of large companies. There are many people who take his warnings seriously and are heeding his advice about a possible major rise in oil prices.
The United States had made a deal with Iran in 2015 which ended the trade sanctions on Iran. President Donald Trump had stated that the deal was harmful to America and so the deal was terminated. The US is going to impose sanctions once again on Iran unless a new deal is made. The sanctions are scheduled to take effect in November. Trump has also warned that the US will refuse business to any country that ignores the sanctions. Matt Badiali believes imposing sanctions on Iran could upset the entire oil market around the world. Iran has been producing around two million barrels of oil a day. It will be very hard to replace a two million barrel a day deficit of oil.
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— Matt Badiali (@MattBadialiGuru) October 12, 2018
Although it is possible that the sanctions could impact the global oil market, some experts disagree with the analysis provided by Matt Badiali. Some analysts say that there is already close to a million barrels of surplus oil on the market daily and that even with Iran out of the picture the price of oil should remain steady. Matt Badiali says that even if there is a surplus of oil currently on the market, it would only take one disruption in the oil market to cause oil to skyrocket higher once Iran is out of the picture. China has already stated that they will ignore any sanctions the US places on Iran and there are other countries who plan stand with China on this issue.