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

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

Lifting Iranian sanctions have a significant affect the globe oil market. Iran’s oil reserves would be the fourth largest on the globe and they’ve a production capacity of around 4 million barrels a day, driving them to the second largest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% in the world’s total proven petroleum reserves, in the rate with the 2006 production the reserves in Iran could last 98 years. Most likely Iran create about 2million barrels of oil per day for the market and in line with the world bank this will resulted in decline in the oil price by $10 per barrel pick up.

Based on Data from OPEC, at the start of 2013 the most important oil deposits will be in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics of the reserves it is not always easy to bring this oil to the surface because of the limitation on extraction technologies and the cost to extract.

As China’s increased requirement for gas instead of fossil fuel further reduces overall requirement for oil, the increase in supply from Iran and also the continuation Saudi Arabia putting more oil to the market should see the price drop over the next 12 months plus some analysts are predicting prices will belong to the $30’s.

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