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

A sustained make room $54.00 will indicate the presence of buyers. This can 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 often a pipe dream for buyers from fuelled trade talks.

Lifting Iranian sanctions will have a significant affect the globe oil market. Iran’s oil reserves would be the fourth largest in the world and they’ve a production capacity of about 4 million barrels a day, driving them to the second largest producer in OPEC. Iran’s oil reserves account for approximately 10% of 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 to the market and according to the world bank this may resulted in decline in the crude oil price by $10 per barrel the coming year.

In accordance with 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 with the reserves it isn’t always possible to bring this oil on the surface in the limitation on extraction technologies and the cost to extract.

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

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