A sustained move under $53.61 will signal the existence of sellers indicating a bull trap. This can 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 to the main retracement zone at $50.28 to $48.83.
A sustained move over $54.00 will indicate the presence of buyers. This may also indicate that Friday’s move was fueled by fake buying rather and just buy stops. The upside momentum will not continue and testing $54.98 is a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant effect on the entire world oil market. Iran’s oil reserves include the fourth largest on the planet and they have a production capacity of about 4 million barrels a day, which makes them the second largest producer in OPEC. Iran’s oil reserves account for approximately 10% of the world’s total proven petroleum reserves, with the rate from the 2006 production the reserves in Iran could last 98 years. More than likely Iran will prove to add about One million barrels of oil per day towards the market and in line with the world bank this may resulted in the lowering of the oil price by $10 per barrel next year.
In accordance with Data from OPEC, at the beginning of 2013 the biggest oil deposits have been in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics in the reserves it’s not always easy 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 need for gas main as an option to fossil fuel further reduces overall need for oil, the increase in supply from Iran and the continuation Saudi Arabia putting more oil onto the market should understand the price drop over the next Yr and several analysts are predicting prices will get into the $30’s.
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