A sustained move under $53.61 will signal a good sellers revealing a bull trap. This may 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 selling to extend in the main retracement zone at $50.28 to $48.83.
A sustained move over $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 really a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions will have a significant impact on the planet oil market. Iran’s oil reserves are the fourth largest on the globe with a production capacity of around 4 million barrels each day, driving them to the second biggest producer in OPEC. Iran’s oil reserves account for approximately 10% of the world’s total proven petroleum reserves, with the rate in the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran include about A million barrels of oil a day for the market and based on the world bank this can result in the decline in the crude oil price by $10 per barrel next year.
In accordance with Data from OPEC, at the start of 2013 the biggest oil deposits will be in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics with the reserves it’s not at all always easy to bring this oil to the surface because of the limitation on extraction technologies and also the cost to extract.
As China’s increased demand for natural gas instead of fossil fuel further reduces overall demand for oil, the increase in supply from Iran and the continuation Saudi Arabia putting more oil on top of the market should start to see the price drop in the next Twelve months and some analysts are predicting prices will fall under the $30’s.
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