A sustained move under $53.61 will signal the existence of 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 then look for the selling to extend to the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate a good buyers. This will likely also indicate that Friday’s move was fueled by fake buying rather and buy stops. The upside momentum is not going to continue and testing $54.98 is a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant affect the entire world oil market. Iran’s oil reserves will be the fourth largest on earth and they have a production capacity of around 4 million barrels per day, which makes them the second largest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% with the world’s total proven petroleum reserves, with the rate from the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran create about A million barrels of oil per day towards the market and according to the world bank this will likely resulted in the cut in the crude oil price by $10 per barrel pick up.
As outlined by 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%. Due to the characteristics from the reserves it isn’t 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 natural gas as an alternative to fossil fuel further reduces overall interest in oil, the increase in supply from Iran along with the continuation Saudi Arabia putting more oil on the market should start to see the price drop on the next 1 year plus some analysts are predicting prices will fall into the $30’s.
To get more information about oil prices forecast please visit resource: visit here.