A sustained move under $53.61 will signal the presence of sellers indicating a bull trap. This will likely trigger a labored break with potential targets weighing $52.40, $51.29 and $50.66. If $50.66 fails as support discover the supplying extend into the main retracement zone at $50.28 to $48.83.

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

Lifting Iranian sanctions have a significant effect on the planet oil market. Iran’s oil reserves include the fourth largest on the planet and the’ve a production capacity of about 4 million barrels a day, which makes them the second biggest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% from the world’s total proven petroleum reserves, in the rate from the 2006 production the reserves in Iran could last 98 years. Probably Iran include about 1 million barrels of oil a day towards the market and in line with the world bank this will likely resulted in cut in the oil price by $10 per barrel the coming year.

As outlined by Data from OPEC, at the outset of 2013 the biggest oil deposits will be in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics of the reserves it is not always possible to bring this oil on the surface because of the limitation on extraction technologies and the cost to extract.

As China’s increased requirement for gas as an option to 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 understand the price drop within the next 12 months and several analysts are predicting prices will fall into the $30’s.

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