A sustained move under $53.61 will signal the existence of 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 arehorrified to find that the selling to extend in to the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate a good buyers. This may also indicate that Friday’s move was fueled by fake buying rather and simply buy stops. The upside momentum will not continue and testing $54.98 is often a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant effect on the entire world oil market. Iran’s oil reserves will be the fourth largest on earth and they have a production capacity of around 4 million barrels a day, which makes them the second biggest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% with the world’s total proven petroleum reserves, at the rate of the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran will add about One million barrels of oil every day to the market and based on the world bank this will likely resulted in lowering of the crude oil price by $10 per barrel pick up.
Based on Data from OPEC, at the beginning of 2013 the most important oil deposits come in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics with the reserves it’s not always simple to bring this oil for the surface due to the limitation on extraction technologies and also the cost to extract.
As China’s increased requirement for natural gas rather than fossil fuel further reduces overall need for oil, the increase in supply from Iran along with the continuation Saudi Arabia putting more oil on top of the market should start to see the price drop over the next 1 year and several analysts are predicting prices will belong to the $30’s.
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