A sustained move under $53.61 will signal the existence of sellers indicating 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 presence of buyers. This can also indicate that Friday’s move was fueled by fake buying rather and simply buy stops. The upside momentum is not going to continue and testing $54.98 is really a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant influence 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 a day, making them 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. Probably Iran will prove to add about 1 million barrels of oil a day on the market and in accordance with the world bank this will resulted in the cut in the oil price by $10 per barrel the coming year.
According to Data from OPEC, at the beginning of 2013 the largest oil deposits are in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics of the reserves it’s not always possible to bring this oil on the surface because of the limitation on extraction technologies along with the cost to extract.
As China’s increased interest in natural gas rather than 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 top of the market should understand the price drop on the next 12 months plus some analysts are predicting prices will get into the $30’s.
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