In the last 3 trading days we’ve witness the stock market leap up drastically (mostly) because of news that Greece and the rest of Europe had found some common ground.
That just shows you how sensitive investors are, and how significant news can easily create big money opportunities for you.
Here’s the big news for oil, how it could save you hundreds at the pump, and how to potentially profit in a huge way…
In the midst of the Greek bailout discussions, another bit of rather impactful news dropped…
Western powers and Iran just struck an arms-control deal, and including in the terms of the accord is that Iran can once again add to the global oil supply. That’s huge news for Iran, and still relatively significant news for everyone else after energy sanctions were imposed on Iran in 2012.
That announcement immediately sent the price of crude oil down roughly 2% a couple of days ago, but that could be just the very beginning…
However, the immediate future shouldn’t see a any gigantic swings in the price of oil after more news leaked out saying that Iran wouldn’t be able to enact the measure necessary to lift the sanctions until the end of 2015.
But what delayed impact should we see?
Well, an already oversupplied oil market will start to see an influx of Iranian oil in 2016. And by the simple laws of supply and demand, that should bring the price of oil down.
How far down?
That much is unclear, but the potential is big.
Gas prices at the pump have a chance to fall significantly, perhaps even down well below $3 a gallon.
However, much of the news that was announced in the last couple of days may have already been factored into the current price of oil, at least somewhat.
Looking at the big picture, oil prices were already expected by many to begin dropping after the summer’s increased-demand. This news just adds to the potential fall of oil, and that gives you and I a chance to profit.
Firstly, if you own oil positions, now might be a great time to exit those.
Secondly, shorting oil securities or buying securities that perform inversely to oil would give us a chance to benefit from the fall of oil.
But remember, the oil market is always changing, so be ready for more news that could impact prices.
