A sustained move under $53.61 will signal a good 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 then look for the selling to extend in to the main retracement zone at $50.28 to $48.83.
A sustained move over $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 continue and testing $54.98 can be a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions will have a significant effect on the entire world oil market. Iran’s oil reserves include the fourth largest on earth and the’ve a production capacity of about 4 million barrels every day, which makes them the second biggest producer in OPEC. Iran’s oil reserves account for approximately 10% in the world’s total proven petroleum reserves, at the rate in the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran include about 2million barrels of oil every day for the market and in accordance with the world bank this may lead to the lowering of the oil price by $10 per barrel pick up.
According to Data from OPEC, at the start of 2013 the greatest oil deposits will be in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics from the reserves it’s not always possible to bring this oil for the surface due to the limitation on extraction technologies and also the cost to extract.
As China’s increased demand for propane as an option to fossil fuel further reduces overall interest in oil, the increase in supply from Iran and also the continuation Saudi Arabia putting more oil to the market should see the price drop on the next Yr and several analysts are predicting prices will belong to the $30’s.
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