A sustained move under $53.61 will signal the existence of sellers revealing a bull trap. This will likely 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 in the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the use of buyers. This will also indicate that Friday’s move was fueled by fake buying rather and just buy stops. The upside momentum will not continue and testing $54.98 is often a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions will have a significant effect on the planet oil market. Iran’s oil reserves would be the fourth largest on earth and the’ve a production capacity around 4 million barrels a day, making them the second biggest producer in OPEC. Iran’s oil reserves account for 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. Almost certainly Iran will prove to add about One million barrels of oil a day to the market and in line with the world bank this may lead to the decline in the crude oil price by $10 per barrel next season.
In accordance with Data from OPEC, at the outset of 2013 the largest oil deposits are 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 on the surface given the limitation on extraction technologies along with the cost to extract.
As China’s increased need for natural gas rather than fossil fuel further reduces overall need for oil, the increase in supply from Iran and also the continuation Saudi Arabia putting more oil on the market should understand the price drop on the next 12 months and some analysts are predicting prices will get into the $30’s.
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