A sustained move under $53.61 will signal the presence of sellers showing a bull trap. This will likely trigger a labored break with potential targets weighing $52.40, $51.29 and $50.66. If $50.66 fails as support discover the selling to extend in the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the presence of buyers. This will also indicate that Friday’s move was fueled by fake buying rather and simply buy stops. The upside momentum won’t continue and testing $54.98 is a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant influence on the world oil market. Iran’s oil reserves would be the fourth largest on the globe and they have a production capacity of around 4 million barrels per day, which makes them the second biggest producer in OPEC. Iran’s oil reserves be the cause of 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. Probably Iran will add about One million barrels of oil each day for the market and according to the world bank this will likely resulted in the cut in the crude oil price by $10 per barrel the coming year.
According to Data from OPEC, at the outset of 2013 the greatest oil deposits will be in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics with the reserves it is not always simple to bring this oil towards the surface because of the limitation on extraction technologies and also the cost to extract.
As China’s increased need for gas main rather than fossil fuel further reduces overall need for oil, the rise in supply from Iran and the continuation Saudi Arabia putting more oil onto the market should start to see the price drop over the next 12 months and a few analysts are predicting prices will belong to the $30’s.
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