A sustained move under $53.61 will signal the use of sellers showing a bull trap. This will likely 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 into the main retracement zone at $50.28 to $48.83.
A sustained move over $54.00 will indicate the use of buyers. This will likely also indicate that Friday’s move was fueled by fake buying rather and simply buy stops. The upside momentum is not going to continue and testing $54.98 is often a fantasy 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 earth and the’ve a production capacity around 4 million barrels a day, making them the second biggest producer in OPEC. Iran’s oil reserves take into account approximately 10% of the world’s total proven petroleum reserves, with the rate with the 2006 production the reserves in Iran could last 98 years. More than likely Iran will prove to add about 1 million barrels of oil per day towards the market and based on the world bank this may resulted in cut in the crude oil price by $10 per barrel pick up.
As outlined by Data from OPEC, at the beginning of 2013 the largest oil deposits come in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics with the reserves it isn’t always easy to bring this oil on the surface in the limitation on extraction technologies and the cost to extract.
As China’s increased interest in propane instead of fossil fuel further reduces overall interest in oil, the rise in supply from Iran and also the continuation Saudi Arabia putting more oil on the market should begin to see the price drop in the next Yr plus some analysts are predicting prices will get into the $30’s.
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