A sustained move under $53.61 will signal the existence of sellers which indicates 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 selling to extend to the main retracement zone at $50.28 to $48.83.
A sustained move over $54.00 will indicate the use 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 pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant influence on the entire world oil market. Iran’s oil reserves include the fourth largest on the globe and they’ve a production capacity of approximately 4 million barrels each day, making them the second largest producer in OPEC. Iran’s oil reserves take into account approximately 10% from the world’s total proven petroleum reserves, at the rate in the 2006 production the reserves in Iran could last 98 years. Probably Iran include about 1 million barrels of oil per day on the market and according to the world bank this will resulted in lowering of the crude oil price by $10 per barrel next season.
Based on Data from OPEC, at the beginning of 2013 the biggest oil deposits come in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics of the reserves it’s not at all always simple to bring this oil for the surface given the limitation on extraction technologies as well as the cost to extract.
As China’s increased need for gas 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 see the price drop within the next 12 months and several analysts are predicting prices will fall into the $30’s.
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