A sustained move under $53.61 will signal the use of sellers showing a bull trap. This will likely 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 supplying extend into the main retracement zone at $50.28 to $48.83.

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

Lifting Iranian sanctions may significant influence on the globe oil market. Iran’s oil reserves would be the fourth largest on the globe and the’ve a production capacity of about 4 million barrels every day, driving them to the second largest producer in OPEC. Iran’s oil reserves account for approximately 10% from the world’s total proven petroleum reserves, in the rate in the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran create about A million barrels of oil a day to the market and in line with the world bank this will likely lead to 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 global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics in the reserves it is not always simple to bring this oil on the surface in the limitation on extraction technologies as well as the cost to extract.

As China’s increased interest in natural gas instead of fossil fuel further reduces overall demand 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 within the next Yr plus some analysts are predicting prices will get into the $30’s.

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