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 discover the supplying extend in to the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the existence of buyers. This can also indicate that Friday’s move was fueled by fake buying rather and merely buy stops. The upside momentum will not likely continue and testing $54.98 can be a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions will have a significant impact on the world oil market. Iran’s oil reserves include the fourth largest on the planet with a production capacity of approximately 4 million barrels per day, causing them to be the second largest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% of the world’s total proven petroleum reserves, on the rate from the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran will prove to add about A million barrels of oil per day for the market and in accordance with the world bank this will lead to the cut in the oil price by $10 per barrel next year.
Based on Data from OPEC, at the outset of 2013 the largest oil deposits have been in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics with the reserves it’s not at all always very easy to bring this oil for the surface because of the limitation on extraction technologies and also the cost to extract.
As China’s increased need for gas rather than fossil fuel further reduces overall requirement for oil, the increase in supply from Iran along with the continuation Saudi Arabia putting more oil on top of the market should see the price drop on the next 12 months and some analysts are predicting prices will get into the $30’s.
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