A sustained move under $53.61 will signal the presence of sellers revealing a bull trap. This will 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 supplying extend into the main retracement zone at $50.28 to $48.83.
A sustained move over $54.00 will indicate the use of buyers. This may also indicate that Friday’s move was fueled by fake buying rather and just buy stops. The upside momentum will not likely continue and testing $54.98 is a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant affect the entire world oil market. Iran’s oil reserves include the fourth largest on earth and the’ve a production capacity around 4 million barrels per day, causing them to be the second largest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% in the world’s total proven petroleum reserves, at the rate with the 2006 production the reserves in Iran could last 98 years. Probably Iran will prove to add about One million barrels of oil per day for the market and according to the world bank this may resulted in lowering of the oil price by $10 per barrel next year.
Based on Data from OPEC, at the start of 2013 the largest oil deposits have been in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics in the reserves it is not always very easy to bring this oil for the surface due to the limitation on extraction technologies as well as the cost to extract.
As China’s increased requirement for gas main rather than fossil fuel further reduces overall need for oil, the increase in supply from Iran as well as the continuation Saudi Arabia putting more oil onto the market should start to see the price drop on the next 1 year and some analysts are predicting prices will fall under the $30’s.
For additional information about crude oil price forecast today please visit webpage: web link.