A sustained move under $53.61 will signal a good sellers which indicates a bull trap. This will likely 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 supplying extend to 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 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 may significant affect the world oil market. Iran’s oil reserves would be the fourth largest on the planet and the’ve a production capacity around 4 million barrels per day, making them the second largest producer in OPEC. Iran’s oil reserves account for approximately 10% in the world’s total proven petroleum reserves, at the rate from the 2006 production the reserves in Iran could last 98 years. More than likely Iran create about 1 million barrels of oil per day on the market and in accordance with the world bank this will likely result in the decline in the oil price by $10 per barrel the coming year.

According to Data from OPEC, at the start of 2013 the greatest oil deposits will be in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics with the reserves it’s not at all always easy to bring this oil towards the surface in the limitation on extraction technologies along with the cost to extract.

As China’s increased need for gas as an option to fossil fuel further reduces overall demand for oil, the increase in supply from Iran and also the continuation Saudi Arabia putting more oil to the market should start to see the price drop within the next 12 months and a few analysts are predicting prices will fall under the $30’s.

To learn more about oil prices forecast visit the best web portal.