A sustained move under $53.61 will signal the use of sellers showing a bull trap. This may 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 supplying 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 will likely also indicate that Friday’s move was fueled by fake buying rather and simply buy stops. The upside momentum will not likely continue and testing $54.98 is really a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant impact on the world oil market. Iran’s oil reserves include the fourth largest on the planet and the’ve a production capacity around 4 million barrels each day, driving them to the second biggest producer in OPEC. Iran’s oil reserves take into account approximately 10% in the world’s total proven petroleum reserves, on the rate with the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran create about 1 million barrels of oil a day for the market and based on the world bank this will result in the cut in the crude oil price by $10 per barrel the coming year.
Based on Data from OPEC, at the outset of 2013 the greatest oil deposits are in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics in the reserves it’s not at all always easy to bring this oil towards the surface in the limitation on extraction technologies as well as the cost to extract.
As China’s increased interest in natural gas instead of fossil fuel further reduces overall need for oil, the increase in supply from Iran and the continuation Saudi Arabia putting more oil on top of the market should start to see the price drop in the next Twelve months and a few analysts are predicting prices will fall into the $30’s.
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