A sustained move under $53.61 will signal the use of sellers which indicates a bull trap. This will likely trigger a labored break with potential targets coming in at $52.40, $51.29 and $50.66. If $50.66 fails as support then look for 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 will likely also indicate that Friday’s move was fueled by fake buying rather and buy stops. The upside momentum will not likely continue and testing $54.98 is often a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant effect on the planet oil market. Iran’s oil reserves will be the fourth largest on earth and they have a production capacity of around 4 million barrels every day, causing them to be the second biggest producer in OPEC. Iran’s oil reserves take into account approximately 10% with the world’s total proven petroleum reserves, on the rate with the 2006 production the reserves in Iran could last 98 years. More than likely Iran will prove to add about A million barrels of oil per day towards the market and based on the world bank this can resulted in lowering of the crude oil price by $10 per barrel pick up.
In accordance with Data from OPEC, at the start of 2013 the greatest oil deposits have been in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics in the reserves it is not always simple to bring this oil to the surface given the limitation on extraction technologies along with the cost to extract.
As China’s increased need for gas as an option to fossil fuel further reduces overall requirement for oil, the increase in supply from Iran and the continuation Saudi Arabia putting more oil onto the market should see the price drop in the next Twelve months and a few analysts are predicting prices will fall under the $30’s.
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