A sustained move under $53.61 will signal the use of sellers which indicates 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 in the main retracement zone at $50.28 to $48.83.
A sustained move over $54.00 will indicate the existence of buyers. This can also indicate that Friday’s move was fueled by fake buying rather and simply buy stops. The upside momentum is not going to continue and testing $54.98 is a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant influence on the planet oil market. Iran’s oil reserves include the fourth largest on the globe and the’ve a production capacity around 4 million barrels each day, causing them to be the second biggest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% with the world’s total proven petroleum reserves, in the rate with the 2006 production the reserves in Iran could last 98 years. Most likely Iran will add about One million barrels of oil every day for the market and based on the world bank this can resulted in the cut in the crude oil price by $10 per barrel the coming year.
In accordance with Data from OPEC, at the start of 2013 the biggest oil deposits are in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics of the reserves it isn’t always easy to bring this oil on the surface in the limitation on extraction technologies and the cost to extract.
As China’s increased requirement for gas as an alternative to fossil fuel further reduces overall demand for 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 1 year and several analysts are predicting prices will fall under the $30’s.
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