A sustained move under $53.61 will signal the use of sellers indicating 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 the presence of buyers. This can also indicate that Friday’s move was fueled by fake buying rather and buy stops. The upside momentum will not continue and testing $54.98 can be a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions will have a significant impact on the globe oil market. Iran’s oil reserves include the fourth largest on the planet and they’ve a production capacity of approximately 4 million barrels every day, which makes them the second biggest producer in OPEC. Iran’s oil reserves take into account approximately 10% from the world’s total proven petroleum reserves, at the rate from the 2006 production the reserves in Iran could last 98 years. Most likely Iran include about One million barrels of oil a day for the market and according to the world bank this will likely lead to the decline in the crude oil price by $10 per barrel the coming year.
Based on Data from OPEC, at the outset of 2013 the biggest oil deposits come in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics with the reserves it isn’t always possible to bring this oil for the surface because of the limitation on extraction technologies and also the cost to extract.
As China’s increased requirement for natural gas as an alternative to fossil fuel further reduces overall need for oil, the rise in supply from Iran and the continuation Saudi Arabia putting more oil to the market should begin to see the price drop in the next 12 months plus some analysts are predicting prices will fall under the $30’s.
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