A sustained move under $53.61 will signal the use of sellers revealing 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 supplying extend in to the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the presence of buyers. This can also indicate that Friday’s move was fueled by fake buying rather and buy stops. The upside momentum is not going to continue and testing $54.98 is really a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions will have a significant effect on the planet oil market. Iran’s oil reserves would be the fourth largest on the globe and the’ve a production capacity of around 4 million barrels a day, which makes them the second biggest producer in OPEC. Iran’s oil reserves account for approximately 10% from the world’s total proven petroleum reserves, with the rate in the 2006 production the reserves in Iran could last 98 years. Most likely Iran will add about One million barrels of oil each day for the market and according to the world bank this can result in the cut in the crude oil price by $10 per barrel the coming year.
Based on Data from OPEC, at the outset of 2013 the most important oil deposits will be in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics of the reserves it is not always possible to bring this oil on the surface because of the limitation on extraction technologies as well as the cost to extract.
As China’s increased interest in natural gas as an option to fossil fuel further reduces overall requirement for oil, the increase in supply from Iran along with the continuation Saudi Arabia putting more oil onto the market should start to see the price drop on the next 1 year and several analysts are predicting prices will belong to the $30’s.
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