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 weighing $52.40, $51.29 and $50.66. If $50.66 fails as support then look for the selling to extend in to the main retracement zone at $50.28 to $48.83.
A sustained move over $54.00 will indicate a good buyers. This will 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 really a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant impact on the planet oil market. Iran’s oil reserves will be the fourth largest on the globe and they have a production capacity of around 4 million barrels every day, driving them to the second largest producer in OPEC. Iran’s oil reserves take into account approximately 10% in the world’s total proven petroleum reserves, on the rate with the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran create about A million barrels of oil each day to the market and in line with the world bank this may resulted in the decline in the oil price by $10 per barrel next season.
According to Data from OPEC, at the start of 2013 the biggest oil deposits come in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics from the reserves it’s not at all always very easy to bring this oil for the surface in the limitation on extraction technologies and the cost to extract.
As China’s increased interest in propane as an option to fossil fuel further reduces overall demand for oil, the rise in supply from Iran as well as the continuation Saudi Arabia putting more oil on the market should see the price drop in the next 1 year and some analysts are predicting prices will fall into the $30’s.
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