A sustained move under $53.61 will signal a good sellers indicating a bull trap. This will trigger a labored break with potential targets coming in at $52.40, $51.29 and $50.66. If $50.66 fails as support discover the selling to extend into the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the presence of buyers. This can also indicate that Friday’s move was fueled by fake buying rather and simply buy stops. The upside momentum is not going to continue and testing $54.98 is a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant impact on the planet oil market. Iran’s oil reserves would be the fourth largest on earth and they have a production capacity of approximately 4 million barrels a day, making them the second biggest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% of the world’s total proven petroleum reserves, at the rate from the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran will prove to add about A million barrels of oil each day towards the market and in accordance with the world bank this may lead to the lowering of the crude oil price by $10 per barrel next season.
As outlined by Data from OPEC, at the outset of 2013 the largest oil deposits will be in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics with the reserves it is not always very easy to bring this oil to the surface because of the limitation on extraction technologies as well as the cost to extract.
As China’s increased requirement for gas instead of fossil fuel further reduces overall need for oil, the rise in supply from Iran as well as the continuation Saudi Arabia putting more oil onto the market should understand the price drop within the next 12 months and several analysts are predicting prices will fall under the $30’s.
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