A sustained move under $53.61 will signal the use of sellers revealing 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 supplying extend in 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 also indicate that Friday’s move was fueled by fake buying rather and merely buy stops. The upside momentum will not likely continue and testing $54.98 is a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant effect on the world oil market. Iran’s oil reserves include the fourth largest in the world with a production capacity of around 4 million barrels a 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, in the rate of the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran create about One million barrels of oil every day towards the market and according to the world bank this may lead to the lowering of the crude oil price by $10 per barrel next year.
In accordance with Data from OPEC, at the beginning of 2013 the greatest oil deposits have been 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 always easy to bring this oil towards the surface given the limitation on extraction technologies as well as the cost to extract.
As China’s increased need for natural gas instead of fossil fuel further reduces overall requirement for oil, the rise in supply from Iran and also the continuation Saudi Arabia putting more oil onto the market should start to see the price drop over the next 1 year plus some analysts are predicting prices will get into the $30’s.
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