Following comments from Israeli Prime Minister Benjamin Netanyahu regarding Iran and nuclear weapon development, oil spiked once more. With worries about a potential war, the market sentiment is getting scared of not being caught short in this commodity.
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New York, NY (PRWEB) August 29, 2012
The International 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 Middle East.
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 anytime soon.”
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 move up.”
Profit 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.
Profit Confidential 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%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.