Since OPEC members and participating non-OPEC countries concluded an agreement in May to continue the supply reduction deal of 1.76 million barrels per day for another nine months until March 2018, the price of oil has declined more than 15 percent. Currently, the North American benchmark WTI is currently trading at 44 per barrel and Brent at $2.5 per barrel premium to WTI and the supply glut rage for a third consecutive year. Currently, nothing is working out in favor of the oil bulls, however, there is a possible scenario, which might see the price rocketing higher and even to a three digit number. That is geopolitics,

• The fragile political state of Venezuela, which is an OPEC member and produces about 1.7 million barrels of crude oil every day could see that flow dry out on further political deterioration.
• Troubles are brewing in Mexico over fallouts from the United States and a drug cartel war.
• Qatar blockade triggering a major military confrontation in the region.
• Trouble is also brewing in Azerbaijan.
• There are signs of resurfacing of problems in the Niger Delta that could once again cut the Nigerian production of 1.5 million barrels by half.

While these geopolitical scenarios seem unlikely at the moment, it is entirely a possible one.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest