A sustained move under $53.61 will signal the presence of sellers revealing a bull trap. This will likely 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 in to the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the use of buyers. This can 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 impact on the planet oil market. Iran’s oil reserves would be the fourth largest on earth with a production capacity of about 4 million barrels a day, which makes them the second largest producer in OPEC. Iran’s oil reserves take into account approximately 10% with the world’s total proven petroleum reserves, at the rate from the 2006 production the reserves in Iran could last 98 years. Probably Iran will add about A million barrels of oil per day on the market and according to the world bank this can lead to the cut in the crude oil price by $10 per barrel next year.
As outlined by Data from OPEC, at the beginning of 2013 the biggest oil deposits have been in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics of the reserves it’s not at all always easy to bring this oil towards the surface due to the limitation on extraction technologies along with the cost to extract.
As China’s increased demand for gas rather than fossil fuel further reduces overall demand for oil, the increase in supply from Iran and the continuation Saudi Arabia putting more oil on top of the market should start to see the price drop in the next 1 year and several analysts are predicting prices will fall under the $30’s.
More details about oil prices forecast go to see our webpage.