A sustained move under $53.61 will signal the use of sellers which indicates a bull trap. This will trigger a labored break with potential targets coming in at $52.40, $51.29 and $50.66. If $50.66 fails as support arehorrified to find that the selling to extend into the main retracement zone at $50.28 to $48.83.

A sustained make room $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 won’t continue and testing $54.98 is often a pipe dream for buyers from fuelled trade talks.

Lifting Iranian sanctions have a significant impact on the planet oil market. Iran’s oil reserves include the fourth largest in the world and they have a production capacity of approximately 4 million barrels each day, driving them to the second largest producer in OPEC. Iran’s oil reserves account for approximately 10% of the world’s total proven petroleum reserves, on the rate in the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran include about 1 million barrels of oil every day for the market and in line with the world bank this can resulted in the decline in the oil price by $10 per barrel pick up.

According to Data from OPEC, at the outset of 2013 the largest oil deposits will be in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics with the reserves it’s not always possible to bring this oil on the surface in the limitation on extraction technologies as well as the cost to extract.

As China’s increased interest in propane as an alternative to fossil fuel further reduces overall requirement for oil, the increase in supply from Iran as well as the continuation Saudi Arabia putting more oil on the market should see the price drop on the next Twelve months plus some analysts are predicting prices will belong to the $30’s.

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