A sustained move under $53.61 will signal the presence of sellers which indicates a bull trap. This can 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 to the main retracement zone at $50.28 to $48.83.

A sustained make room $54.00 will indicate the presence of buyers. This will 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 often a fantasy for buyers from fuelled trade talks.

Lifting Iranian sanctions have a significant impact on the world oil market. Iran’s oil reserves will be the fourth largest on the globe and they’ve a production capacity around 4 million barrels every day, causing them to be the second biggest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% with the world’s total proven petroleum reserves, at the rate of the 2006 production the reserves in Iran could last 98 years. Most likely Iran create about 2million barrels of oil per day towards the market and based on the world bank this will likely resulted in the lowering of the crude oil price by $10 per barrel next season.

Based on Data from OPEC, at the beginning of 2013 the most important oil deposits are in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics with the reserves it is not always possible to bring this oil on the surface because of the limitation on extraction technologies and also the cost to extract.

As China’s increased interest in gas main rather than fossil fuel further reduces overall interest in oil, the increase in supply from Iran and the continuation Saudi Arabia putting more oil onto the market should begin to see the price drop within the next Twelve months plus some analysts are predicting prices will belong to the $30’s.

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