A sustained move under $53.61 will signal the existence of sellers which indicates 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 then look for the selling to extend to the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the presence of buyers. This will also indicate that Friday’s move was fueled by fake buying rather and buy stops. The upside momentum won’t continue and testing $54.98 is really a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions will have a significant impact on the planet oil market. Iran’s oil reserves include the fourth largest on earth and the’ve a production capacity of around 4 million barrels a day, driving them to the second biggest producer in OPEC. Iran’s oil reserves account for approximately 10% in the world’s total proven petroleum reserves, on the rate of the 2006 production the reserves in Iran could last 98 years. Most likely Iran include about One million barrels of oil each day for the market and based on the world bank this will result in the cut in the oil price by $10 per barrel next season.
According to Data from OPEC, at the start of 2013 the biggest oil deposits will be in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics with the reserves it isn’t always simple to bring this oil on the surface given the limitation on extraction technologies and also 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 begin to see the price drop over the next 12 months plus some analysts are predicting prices will fall under the $30’s.
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