A sustained move under $53.61 will signal the presence of sellers showing a bull trap. This will 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 move over $54.00 will indicate the existence of buyers. This will 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 is really a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions will have a significant effect on the entire world oil market. Iran’s oil reserves include the fourth largest on earth with a production capacity around 4 million barrels per day, making 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, in the rate from the 2006 production the reserves in Iran could last 98 years. More than likely Iran will prove to add about One million barrels of oil each day on the market and in line with the world bank this will likely lead to the lowering of the oil price by $10 per barrel pick up.
As outlined by Data from OPEC, at the outset of 2013 the largest oil deposits have been in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics of the reserves it is not always very easy to bring this oil towards the surface given the limitation on extraction technologies and the cost to extract.
As China’s increased need for gas rather than fossil fuel further reduces overall need for oil, the increase in supply from Iran along with the continuation Saudi Arabia putting more oil on the market should see the price drop on the next Yr and some analysts are predicting prices will fall into the $30’s.
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