A sustained move under $53.61 will signal a good sellers showing a bull trap. This will 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 selling to extend to the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the existence of buyers. This will likely 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 may significant impact on the entire world oil market. Iran’s oil reserves would be the fourth largest on earth and they’ve a production capacity of around 4 million barrels each day, driving them to the second biggest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% from the world’s total proven petroleum reserves, on the rate in the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran will prove to add about One million barrels of oil per day on the market and according to the world bank this will lead to the lowering of the oil price by $10 per barrel pick up.
According to Data from OPEC, at the start of 2013 the most important oil deposits have been in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics of the reserves it’s not at all always very easy to bring this oil for the surface due to the limitation on extraction technologies and also the cost to extract.
As China’s increased interest in propane instead of 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 in the next Twelve months and a few analysts are predicting prices will get into the $30’s.
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