A sustained move under $53.61 will signal the presence of sellers revealing a bull trap. This will trigger a labored break with potential targets weighing $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 make room $54.00 will indicate a good buyers. This may also indicate that Friday’s move was fueled by fake buying rather and just 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 will have a significant impact on the planet oil market. Iran’s oil reserves are the fourth largest on the globe with a production capacity of around 4 million barrels per day, driving them to the second biggest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% of the world’s total proven petroleum reserves, at the rate in the 2006 production the reserves in Iran could last 98 years. Most likely Iran will add about One million barrels of oil per day for the market and in line with the world bank this will result in the decline in the oil price by $10 per barrel next year.
Based on Data from OPEC, at the beginning of 2013 the most important oil deposits come in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics in the reserves it isn’t always simple to bring this oil on the surface in the limitation on extraction technologies along with the cost to extract.
As China’s increased interest in propane instead of fossil fuel further reduces overall interest in oil, the rise in supply from Iran and also the continuation Saudi Arabia putting more oil to the market should see the price drop on the next Twelve months and a few analysts are predicting prices will get into the $30’s.
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