A sustained move under $53.61 will signal the use of sellers which indicates a bull trap. This may trigger a labored break with potential targets coming in at $52.40, $51.29 and $50.66. If $50.66 fails as support then look for the supplying extend in to the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the use of buyers. This will also indicate that Friday’s move was fueled by fake buying rather and just buy stops. The upside momentum will not continue and testing $54.98 can be a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions will have a significant affect the planet oil market. Iran’s oil reserves will be the fourth largest on the planet and the’ve a production capacity of about 4 million barrels each day, which makes them the second biggest producer in OPEC. Iran’s oil reserves account for approximately 10% in the world’s total proven petroleum reserves, on the rate in the 2006 production the reserves in Iran could last 98 years. More than likely Iran create about 2million barrels of oil every day on the market and in accordance with the world bank this may result in the decline in the oil price by $10 per barrel next season.
As outlined by Data from OPEC, at the beginning of 2013 the most important oil deposits have been in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics from the reserves it’s not at all always possible to bring this oil to the surface because of the limitation on extraction technologies as well as the cost to extract.
As China’s increased interest in gas main as an option to fossil fuel further reduces overall demand for oil, the increase in supply from Iran along with the continuation Saudi Arabia putting more oil on the market should see the price drop over the next Twelve months plus some analysts are predicting prices will belong to the $30’s.
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