A sustained move under $53.61 will signal a good sellers which indicates 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 supplying extend in 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 simply buy stops. The upside momentum won’t continue and testing $54.98 can be a fantasy for buyers from fuelled trade talks.

Lifting Iranian sanctions may significant impact on the planet oil market. Iran’s oil reserves would be the fourth largest in the world with a production capacity of around 4 million barrels every day, which makes them the second biggest producer in OPEC. Iran’s oil reserves take into account approximately 10% in the world’s total proven petroleum reserves, with the rate in the 2006 production the reserves in Iran could last 98 years. Probably Iran will add about 2million barrels of oil per day to the market and based on the world bank this can result in the lowering of the crude oil price by $10 per barrel next year.

In accordance with Data from OPEC, at the outset of 2013 the greatest oil deposits have been in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics in the reserves it’s not always easy to bring this oil towards the surface due to the limitation on extraction technologies and also the cost to extract.

As China’s increased demand for propane as an option 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 12 months and several analysts are predicting prices will fall under the $30’s.

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