A sustained move under $53.61 will signal the use of sellers showing 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 discover the selling to extend 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 just buy stops. The upside momentum is not going to continue and testing $54.98 is a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant affect the globe oil market. Iran’s oil reserves will be the fourth largest on the globe and they have a production capacity around 4 million barrels per day, driving them to the second largest producer in OPEC. Iran’s oil reserves account for approximately 10% of the world’s total proven petroleum reserves, with the rate in the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran will prove to add about 1 million barrels of oil each day towards the market and according to the world bank this will likely resulted in cut in the oil price by $10 per barrel next year.
According to Data from OPEC, at the start of 2013 the most important oil deposits come in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics of the reserves it’s not at all always simple to bring this oil for the surface in the limitation on extraction technologies as well as the cost to extract.
As China’s increased requirement for gas rather than fossil fuel further reduces overall interest in oil, the rise in supply from Iran and also the continuation Saudi Arabia putting more oil on the market should start to see the price drop on the next Yr and some analysts are predicting prices will get into the $30’s.
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