A sustained move under $53.61 will signal the presence of sellers revealing a bull trap. This can 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 in to the main retracement zone at $50.28 to $48.83.
A sustained move over $54.00 will indicate a good buyers. This can also indicate that Friday’s move was fueled by fake buying rather and buy stops. The upside momentum won’t continue and testing $54.98 is a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant affect the world oil market. Iran’s oil reserves will be the fourth largest on the planet and the’ve a production capacity of about 4 million barrels each day, driving them to the second biggest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% from the world’s total proven petroleum reserves, in the rate with the 2006 production the reserves in Iran could last 98 years. Probably Iran will prove to add about A million barrels of oil a day towards the market and based on the world bank this will lead to the cut in the crude oil price by $10 per barrel pick up.
Based on Data from OPEC, at the outset of 2013 the greatest oil deposits are in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics in the reserves it’s not always possible to bring this oil to the surface given the limitation on extraction technologies and also the cost to extract.
As China’s increased interest in gas as an option to fossil fuel further reduces overall interest in oil, the rise in supply from Iran as well as the continuation Saudi Arabia putting more oil to the market should see the price drop within the next Twelve months and some analysts are predicting prices will get into the $30’s.
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