Oil chart

Geo-political tension comes front and centre again, driving the price of Oil to a 3.5 year high. Indeed, a plethora of supply issues compounded with instability in the Middle East moves Oil to $71.79.  Now confirmed, President Trump has ended cooperation with Iran and the proposed nuclear deal – meaning sanctions in the form of Oil exports are likely.

In addition, Venezuela, confirmed as having the world’s largest Oil reserves, is in turmoil which shows no sign of abating.  In just 1 year, exports of Oil have fallen by 40% from Venezuela with production now at an all-time low of below 1 million barrels a day.  The culmination of this leads me to believe that we are set for an averagely higher Oil price for at least 6 months – possibly for 1 year.

My initial price target would be $92, but likely could be over $100 1 year from now on the basis of the unpredictable nature of the disruption from key suppliers and the seriousness of what could arguably be a proxy war in the Middle East in the form of Syria from both the US and Russia, backing its respective allies & interests. Cheap Replica Omega Watches

Chief Trader,

Jordan Hiscott

******************************************************************************

The above-mentioned market views and content reflect only the opinion of the author, not that of ayondo. This service is for informational purposes only and does not constitute advice or investment advice.

« Back to the ayondo Blog