A sustained move under $53.61 will signal the existence of sellers revealing 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 selling to 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 may 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 a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant affect the entire world oil market. Iran’s oil reserves include the fourth largest on earth and the’ve a production capacity of approximately 4 million barrels a day, causing them to be the second largest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% from the world’s total proven petroleum reserves, at the rate in the 2006 production the reserves in Iran could last 98 years. Probably Iran create about A million barrels of oil each day to the market and based on the world bank this can lead to the decline in the crude oil price by $10 per barrel next year.
As outlined by Data from OPEC, at the beginning of 2013 the most important oil deposits have been in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics in the reserves it is not always simple to bring this oil towards the surface in the limitation on extraction technologies as well as the cost to extract.
As China’s increased interest in propane rather than fossil fuel further reduces overall demand for oil, the rise in supply from Iran along with the continuation Saudi Arabia putting more oil onto the market should start to see the price drop on the next Yr plus some analysts are predicting prices will get into the $30’s.
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