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 coming in at $52.40, $51.29 and $50.66. If $50.66 fails as support discover the supplying extend in to the main retracement zone at $50.28 to $48.83.
A sustained move over $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 is not going to continue and testing $54.98 can be a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant influence on the world oil market. Iran’s oil reserves include the fourth largest on the globe and they’ve a production capacity of approximately 4 million barrels per day, which makes them the second largest producer in OPEC. Iran’s oil reserves take into account approximately 10% of the world’s total proven petroleum reserves, in the rate with the 2006 production the reserves in Iran could last 98 years. Probably Iran will add about 2million barrels of oil every day for the market and in accordance with the world bank this may resulted in the lowering of the crude oil price by $10 per barrel the coming year.
As outlined by Data from OPEC, at the start of 2013 the largest oil deposits come in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics of the reserves it’s not at all always possible to bring this oil for the surface because of the limitation on extraction technologies as well as the cost to extract.
As China’s increased demand for propane as an alternative to fossil fuel further reduces overall demand for oil, the increase in supply from Iran and also the continuation Saudi Arabia putting more oil onto the market should understand the price drop within the next Twelve months and a few analysts are predicting prices will fall under the $30’s.
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