Energy Agency (IEA) recently stated that it’s expecting lower demand for oil
next year due to weaker worldwide economic growth, but according to Sasha
Cekerevac, contributor to Profit
Confidential, oil prices are moving higher on geopolitical risks in the
In the article “Are
Oil Prices Telling Us to Expect an Israeli Strike on Iran?,” Cekerevac
notes that oil is one of the commodities most sensitive to geopolitical events
in the Middle East.
“Following comments from Israeli Prime Minister Benjamin
Netanyahu regarding Iran and nuclear weapon development, oil spiked once more,”
says Cekerevac. “With worries about a potential war, the market sentiment is
getting scared of not being caught short in this commodity.”
While no one can predict if an attack on Iran’s nuclear
facilities will occur, Cekerevac states that his analysis of oil prices shows that
investors are certainly anticipating such a move.
“When one considers the current market sentiment weighed
against the backdrop of the worldwide economy, oil prices should be trading at
much lower levels,” says Cekerevac. “The geopolitical risks are now weighing on
the market sentiment for oil prices, and this situation is unlikely to end
Cekerevac also cautions that if the attack were to trigger
increased regional tensions among other Middle East countries, then that could
cause a prolonged spike in oil prices.
“The impact on market sentiment and reaction in oil prices
would be severe if the attacks were not short-lived and temporary,” says
Cekerevac. “At this point, with oil prices forming a base at the 200-day moving
average, it is highly probable that we can see a continuation in this current
Confidential, which has been published for over a decade now, has been
widely recognized as predicting five major economic events over the past 10
years. In 2002, Profit Confidential
started advising its readers to buy gold-related investments when gold traded
under $300 an ounce. In 2006, it “begged” its readers to get out of the housing
market...before it plunged.
was among the first (back in late 2006) to predict that the U.S. economy would
be in a recession by late 2007. The daily e-letter correctly predicted the
crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and
rode the bear market rally from a Dow Jones Industrial Average of 6,440 on
March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.