A sustained move under $53.61 will signal the existence of 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 to the main retracement zone at $50.28 to $48.83.

A sustained make room $54.00 will indicate the presence of buyers. This can also indicate that Friday’s move was fueled by fake buying rather and buy stops. The upside momentum is not going to continue and testing $54.98 is really a pipe dream for buyers from fuelled trade talks.

Lifting Iranian sanctions will have a significant affect the globe oil market. Iran’s oil reserves would be the fourth largest in the world and they’ve a production capacity around 4 million barrels each day, which makes them the second largest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% in the world’s total proven petroleum reserves, at the rate with the 2006 production the reserves in Iran could last 98 years. Probably Iran will add about 2million barrels of oil each day for the market and based on the world bank this will resulted in the cut in the oil price by $10 per barrel next year.

As outlined by Data from OPEC, at the start of 2013 the most important oil deposits are in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics in the reserves it’s not always possible to bring this oil for the surface because of the limitation on extraction technologies along with the cost to extract.

As China’s increased interest in gas main as an option to fossil fuel further reduces overall need for oil, the rise in supply from Iran along with the continuation Saudi Arabia putting more oil onto the market should see the price drop on the next Yr and several analysts are predicting prices will fall into the $30’s.

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