A sustained move under $53.61 will signal the presence 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 selling to extend in the main retracement zone at $50.28 to $48.83.

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

Lifting Iranian sanctions have a significant affect the world oil market. Iran’s oil reserves include the fourth largest on the globe and they’ve a production capacity of around 4 million barrels each day, making them the second biggest producer in OPEC. Iran’s oil reserves account for approximately 10% with the world’s total proven petroleum reserves, in the rate with the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran will add about A million barrels of oil every day on the market and in accordance with the world bank this will lead to the lowering of the crude oil price by $10 per barrel next season.

Based on Data from OPEC, at the start of 2013 the largest oil deposits are in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics from the reserves it’s not always simple to bring this oil to the surface due to the limitation on extraction technologies as well as the cost to extract.

As China’s increased demand for propane rather than fossil fuel further reduces overall demand for oil, the increase in supply from Iran along with the continuation Saudi Arabia putting more oil onto the market should see the price drop on the next Twelve months plus some analysts are predicting prices will get into the $30’s.

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