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 coming in at $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 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 merely buy stops. The upside momentum won’t 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 world oil market. Iran’s oil reserves would be the fourth largest in the world with a production capacity of around 4 million barrels per day, which makes them the second biggest producer in OPEC. Iran’s oil reserves account for approximately 10% from the world’s total proven petroleum reserves, in the rate with the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran will prove to add about 2million barrels of oil every day to the market and according to the world bank this will result in the lowering of the crude oil price by $10 per barrel pick up.
As outlined by Data from OPEC, at the outset of 2013 the largest oil deposits have been in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics in the reserves it’s not at all always simple to bring this oil to the surface in the limitation on extraction technologies and also the cost to extract.
As China’s increased need for natural gas as an option to fossil fuel further reduces overall need for oil, the increase in supply from Iran and the continuation Saudi Arabia putting more oil onto the market should understand the price drop on the next Twelve months and several analysts are predicting prices will get into the $30’s.
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