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

A sustained make room $54.00 will indicate a good buyers. This may also indicate that Friday’s move was fueled by fake buying rather and merely 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 effect on the world oil market. Iran’s oil reserves would be the fourth largest on the globe with a production capacity of approximately 4 million barrels a day, which makes them the second biggest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% of the world’s total proven petroleum reserves, at the rate with the 2006 production the reserves in Iran could last 98 years. Most likely Iran create about 1 million barrels of oil per day to the market and based on the world bank this will resulted in the lowering of the oil price by $10 per barrel next year.

In accordance with Data from OPEC, at the beginning of 2013 the biggest oil deposits are in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics in the reserves it’s not at all always easy to bring this oil to the surface in the limitation on extraction technologies and the cost to extract.

As China’s increased demand for natural gas instead of fossil fuel further reduces overall requirement for oil, the increase in supply from Iran along with the continuation Saudi Arabia putting more oil onto the market should begin to see the price drop in the next Yr plus some analysts are predicting prices will get into the $30’s.

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