Based upon the currently rising prices of the Brent Crude, it is clear that oil prices worldwide are on the rise and could potentially spike to a level not seen since 2004. Banyan Hill’s Chief Resource Investment Expert Matt Badiali foresees a potential crude oil price jump to over $ 100 a barrel, but, with the right investment strategy, an opportunity for gains. Brent Crude refers to a grade of crude oil that is light with a low sulfur content. The price of Brent Crude is used as a benchmark for the petroleum markets and prices almost two-thirds of the world’s oil.
The third quarter trading brought prices over $ 80 per barrel, and with continued disruption in Venezuela, and the looming sanctions Iran faces, Matt Badiali believes the oil supply may fall short of demand, driving prices even higher. In addition to potential source disruptions, Matt Badiali points out other factors within the U.S., such as pipeline issues and worker shortages, that may also contribute to the petroleum supply shortfall. While consumers can expect to pay more at the pump, other industries, such as utility companies and the manufacturing sector will also be affected by the rising prices of crude oil.
Matt Badiali believes there may be a rise in heating costs this Winter and the potential for higher prices in durable goods, in addition to the rise in transporation costs, all of which could potentially slow the current rate of economic growth. Although if the price of crude oil becomes to high, the U.S. government may release oil from the Strategic Petroleum Reserve to reduce the impact of a limited oil supply on consumers. Watching the Brent Crude pricing carefully and using his natural resource knowledge, Matt Badiali is cautiously optimistic about the gains petroleum investors may earn during this highly volatile period. Tailoring a strategy carefully will provide an opportunity for profit.