A sustained move under $53.61 will signal the existence of sellers indicating a bull trap. This will trigger a labored break with potential targets weighing $52.40, $51.29 and $50.66. If $50.66 fails as support then look for the supplying extend to the main retracement zone at $50.28 to $48.83.
A sustained move over $54.00 will indicate the use of buyers. This can also indicate that Friday’s move was fueled by fake buying rather and buy stops. The upside momentum will not likely continue and testing $54.98 is really a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant impact on the globe oil market. Iran’s oil reserves include the fourth largest on the planet and the’ve a production capacity around 4 million barrels per day, which makes them the second largest producer in OPEC. Iran’s oil reserves take into account approximately 10% of the world’s total proven petroleum reserves, in the rate from the 2006 production the reserves in Iran could last 98 years. Probably Iran include about 2million barrels of oil per day for the market and in line with the world bank this can lead to the cut in the crude oil price by $10 per barrel the coming year.
As outlined by Data from OPEC, at the start of 2013 the largest oil deposits are in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics from the reserves it is not always possible to bring this oil to the surface because of the limitation on extraction technologies and also the cost to extract.
As China’s increased need for gas main as an alternative to fossil fuel further reduces overall need for oil, the rise in supply from Iran as well as the continuation Saudi Arabia putting more oil to the market should understand the price drop over the next 1 year and a few analysts are predicting prices will belong to the $30’s.
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