A sustained move under $53.61 will signal a good sellers which indicates 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 will likely 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 fantasy for buyers from fuelled trade talks.

Lifting Iranian sanctions may significant impact on the entire world oil market. Iran’s oil reserves include the fourth largest in the world and they’ve a production capacity around 4 million barrels per day, causing them to be the second biggest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% of the world’s total proven petroleum reserves, on the rate from the 2006 production the reserves in Iran could last 98 years. More than likely Iran will add about A million barrels of oil a day on the market and according to the world bank this will result in the cut in the crude oil price by $10 per barrel next season.

According to Data from OPEC, at the beginning of 2013 the biggest oil deposits have been in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics with the reserves it is not always simple to bring this oil towards the surface in the limitation on extraction technologies and also the cost to extract.

As China’s increased requirement for propane rather than fossil fuel further reduces overall demand for oil, the rise in supply from Iran and the continuation Saudi Arabia putting more oil onto the market should understand the price drop over the next Yr plus some analysts are predicting prices will belong to the $30’s.

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