A sustained move under $53.61 will signal a good sellers showing 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 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 just buy stops. The upside momentum is not going to continue and testing $54.98 can be a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant effect on the entire world oil market. Iran’s oil reserves would be the fourth largest on earth and the’ve a production capacity of approximately 4 million barrels every day, driving them to the second largest producer in OPEC. Iran’s oil reserves take into account approximately 10% from the world’s total proven petroleum reserves, at the rate of the 2006 production the reserves in Iran could last 98 years. Most likely Iran will add about 1 million barrels of oil a day towards the market and according to the world bank this can result in the decline in the crude oil price by $10 per barrel next season.
Based on Data from OPEC, at the start of 2013 the biggest oil deposits have been in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics with the reserves it’s not at all always very easy to bring this oil to the surface in the limitation on extraction technologies as well as the cost to extract.
As China’s increased requirement for propane as an alternative to fossil fuel further reduces overall interest in oil, the increase in supply from Iran and also the continuation Saudi Arabia putting more oil on top of the market should see the price drop over the next Twelve months and some analysts are predicting prices will fall into the $30’s.
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