A sustained move under $53.61 will signal the existence of sellers showing a bull trap. This can 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 in the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the existence of buyers. This will 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 can be a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant impact on the globe oil market. Iran’s oil reserves would be the fourth largest in the world with a production capacity around 4 million barrels each day, making them the second biggest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% from the world’s total proven petroleum reserves, with the rate of the 2006 production the reserves in Iran could last 98 years. More than likely Iran will add about 2million barrels of oil a day to the market and according to the world bank this will resulted in the lowering of the crude oil price by $10 per barrel pick up.
In accordance with Data from OPEC, at the outset of 2013 the biggest oil deposits will be in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics from the reserves it’s not always easy to bring this oil on the surface due to the limitation on extraction technologies as well as the cost to extract.
As China’s increased need for gas main rather than fossil fuel further reduces overall demand for oil, the rise in supply from Iran and the continuation Saudi Arabia putting more oil to the market should see the price drop in the next Yr plus some analysts are predicting prices will fall into the $30’s.
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