A sustained move under $53.61 will signal the presence of sellers revealing a bull trap. This will likely trigger a labored break with potential targets weighing $52.40, $51.29 and $50.66. If $50.66 fails as support arehorrified to find that the selling to extend in to the main retracement zone at $50.28 to $48.83.
A sustained move over $54.00 will indicate a good buyers. This will also indicate that Friday’s move was fueled by fake buying rather and merely buy stops. The upside momentum won’t continue and testing $54.98 can be a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant influence on the world oil market. Iran’s oil reserves would be the fourth largest on earth with a production capacity of approximately 4 million barrels per day, causing them to be the second biggest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% of the world’s total proven petroleum reserves, with the rate with the 2006 production the reserves in Iran could last 98 years. Most likely Iran will prove to add about 1 million barrels of oil a day for the market and according to the world bank this can result in the lowering of the crude oil price by $10 per barrel the coming year.
Based on Data from OPEC, at the beginning of 2013 the most important oil deposits come in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics in the reserves it isn’t always possible to bring this oil on the surface in the limitation on extraction technologies as well as the cost to extract.
As China’s increased demand for gas as an option to fossil fuel further reduces overall demand for oil, the rise in supply from Iran along with the continuation Saudi Arabia putting more oil on the market should understand the price drop within the next Twelve months plus some analysts are predicting prices will fall into the $30’s.
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