A sustained move under $53.61 will signal the use of sellers showing 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 selling to extend into the main retracement zone at $50.28 to $48.83.

A sustained make room $54.00 will indicate a good buyers. This will likely also indicate that Friday’s move was fueled by fake buying rather and buy stops. The upside momentum will not likely continue and testing $54.98 is a fantasy for buyers from fuelled trade talks.

Lifting Iranian sanctions have a significant affect the globe oil market. Iran’s oil reserves include the fourth largest on the globe and they’ve a production capacity around 4 million barrels each day, making them the second largest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% in the world’s total proven petroleum reserves, on the rate of the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran will add about 1 million barrels of oil a day towards the market and according to the world bank this will result in the lowering of the crude oil price by $10 per barrel pick up.

According to Data from OPEC, at the start 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 with the reserves it’s not always possible to bring this oil for the surface because of the limitation on extraction technologies as well as the cost to extract.

As China’s increased need for gas 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 understand the price drop over the next 12 months and a few analysts are predicting prices will get into the $30’s.

For details about oil prices forecast please visit resource: click now.