A sustained move under $53.61 will signal the presence of sellers indicating a bull trap. This will 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 supplying extend in the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate a good buyers. This will also indicate that Friday’s move was fueled by fake buying rather and simply buy stops. The upside momentum will not likely continue and testing $54.98 can be a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant affect the world oil market. Iran’s oil reserves will be the fourth largest on the globe and they have a production capacity of approximately 4 million barrels every day, which makes them the second biggest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% with the world’s total proven petroleum reserves, on the rate from the 2006 production the reserves in Iran could last 98 years. Probably Iran will prove to add about A million barrels of oil a day towards the market and in line with the world bank this can lead to the lowering of the crude oil price by $10 per barrel next year.
Based on Data from OPEC, at the start of 2013 the most important oil deposits are in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics with the reserves it isn’t always easy to bring this oil towards the surface in the limitation on extraction technologies as well as the cost to extract.
As China’s increased requirement for gas as an option to fossil fuel further reduces overall requirement for oil, the rise in supply from Iran and the continuation Saudi Arabia putting more oil on top of the market should see the price drop within the next 12 months and a few analysts are predicting prices will belong to the $30’s.
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