A sustained move under $53.61 will signal the existence 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 into the main retracement zone at $50.28 to $48.83.

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

Lifting Iranian sanctions have a significant effect on the entire world oil market. Iran’s oil reserves are the fourth largest on the planet and the’ve a production capacity of around 4 million barrels every day, causing them to be the second largest producer in OPEC. Iran’s oil reserves take into account approximately 10% from the world’s total proven petroleum reserves, at the rate of the 2006 production the reserves in Iran could last 98 years. More than likely Iran will prove to add about A million barrels of oil each day to the market and in accordance with the world bank this will likely lead to the lowering of the oil price by $10 per barrel next season.

As outlined by Data from OPEC, at the start of 2013 the most important oil deposits come in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics in the reserves it is not always simple to bring this oil for the surface in the limitation on extraction technologies as well as the cost to extract.

As China’s increased interest in gas as an option to fossil fuel further reduces overall requirement for oil, the increase in supply from Iran and also the continuation Saudi Arabia putting more oil on the market should start to see the price drop within the next 1 year plus some analysts are predicting prices will get into the $30’s.

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