A sustained move under $53.61 will signal a good sellers revealing a bull trap. This may 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 selling to extend into the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate a good buyers. This can also indicate that Friday’s move was fueled by fake buying rather and merely buy stops. The upside momentum won’t continue and testing $54.98 is really a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant impact on the planet oil market. Iran’s oil reserves include the fourth largest on earth and they have a production capacity of about 4 million barrels per day, which makes them the second largest producer in OPEC. Iran’s oil reserves account for approximately 10% from the world’s total proven petroleum reserves, with the rate with the 2006 production the reserves in Iran could last 98 years. Most likely Iran include about 2million barrels of oil each day to the market and in accordance with the world bank this will result in the decline in the crude oil price by $10 per barrel next year.
In accordance with Data from OPEC, at the outset of 2013 the biggest oil deposits are in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics from the reserves it is not always possible to bring this oil for the surface in the limitation on extraction technologies as well as the cost to extract.
As China’s increased demand for gas main 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 on the market should begin to see the price drop within the next Twelve months and several analysts are predicting prices will fall into the $30’s.
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