A sustained move under $53.61 will signal the existence of sellers indicating a bull trap. This can trigger a labored break with potential targets coming in at $52.40, $51.29 and $50.66. If $50.66 fails as support then look for the supplying extend in to the main retracement zone at $50.28 to $48.83.

A sustained make room $54.00 will indicate the presence 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 likely continue and testing $54.98 is really a pipe dream for buyers from fuelled trade talks.

Lifting Iranian sanctions will have a significant influence on the world oil market. Iran’s oil reserves will be the fourth largest on the globe and the’ve a production capacity around 4 million barrels every day, making them the second biggest producer in OPEC. Iran’s oil reserves be the cause of 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 One million barrels of oil every day towards the market and according to the world bank this can resulted in the lowering of the oil price by $10 per barrel next year.

In accordance with Data from OPEC, at the outset of 2013 the most important oil deposits come in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics from the reserves it isn’t always possible to bring this oil to the surface in the limitation on extraction technologies and the cost to extract.

As China’s increased requirement for propane as an option to fossil fuel further reduces overall demand for oil, the rise in supply from Iran as well as the continuation Saudi Arabia putting more oil to the market should see the price drop within the next 1 year and some analysts are predicting prices will fall under the $30’s.

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