A sustained move under $53.61 will signal the existence of sellers revealing 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 supplying extend into the main retracement zone at $50.28 to $48.83.

A sustained move over $54.00 will indicate the presence of buyers. This can also indicate that Friday’s move was fueled by fake buying rather and buy stops. The upside momentum is not going to continue and testing $54.98 can be a fantasy for buyers from fuelled trade talks.

Lifting Iranian sanctions will have a significant impact on the globe oil market. Iran’s oil reserves would be the fourth largest in the world and they’ve a production capacity around 4 million barrels a day, making them the second largest producer in OPEC. Iran’s oil reserves take into account approximately 10% in the world’s total proven petroleum reserves, in the rate in the 2006 production the reserves in Iran could last 98 years. Probably Iran create about 2million barrels of oil each day on the market and in accordance with the world bank this will resulted in the lowering of the crude oil price by $10 per barrel the coming year.

Based on Data from OPEC, at the start of 2013 the largest oil deposits come in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics with the reserves it’s not at all always easy to bring this oil to the surface due to the limitation on extraction technologies and also the cost to extract.

As China’s increased demand for propane as an option to fossil fuel further reduces overall requirement for oil, the rise in supply from Iran along with the continuation Saudi Arabia putting more oil on top of the market should start to see the price drop over the next 1 year and several analysts are predicting prices will fall into the $30’s.

To learn more about crude oil price forecast today check out this website.