A sustained move under $53.61 will signal the presence of sellers indicating 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 in to the main retracement zone at $50.28 to $48.83.

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

Lifting Iranian sanctions will have a significant influence on the globe oil market. Iran’s oil reserves include the fourth largest on the globe and they have a production capacity of approximately 4 million barrels each day, causing them to be the second biggest producer in OPEC. Iran’s oil reserves account for approximately 10% with 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 will add about A million barrels of oil per day to the market and in line with the world bank this will resulted in lowering of 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 will be in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics in the reserves it’s not always simple to bring this oil to the surface because of the limitation on extraction technologies and also the cost to extract.

As China’s increased requirement for gas main rather than fossil fuel further reduces overall interest in oil, the increase in supply from Iran and also the continuation Saudi Arabia putting more oil on top of the market should see the price drop in the next 12 months plus some analysts are predicting prices will belong to the $30’s.

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