A sustained move under $53.61 will signal the presence of sellers revealing 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 into the main retracement zone at $50.28 to $48.83.
A sustained move over $54.00 will indicate the existence of buyers. This can 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 can be a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant influence on the planet oil market. Iran’s oil reserves will be the fourth largest on the globe and they’ve a production capacity of approximately 4 million barrels every day, causing them to be the second largest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% in the world’s total proven petroleum reserves, at the rate with the 2006 production the reserves in Iran could last 98 years. Most likely Iran include about A million barrels of oil a day for the market and according to the world bank this will result in the lowering of the crude oil price by $10 per barrel next season.
According to Data from OPEC, at the beginning of 2013 the largest oil deposits will be in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics with the reserves it’s not always easy to bring this oil on the surface given the limitation on extraction technologies as well as the cost to extract.
As China’s increased demand for gas main as an option to fossil fuel further reduces overall demand for oil, the increase in supply from Iran as well as the continuation Saudi Arabia putting more oil to the market should begin to see the price drop over the next 12 months and a few analysts are predicting prices will get into the $30’s.
More info about oil prices forecast explore our new web page.