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

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

Lifting Iranian sanctions will have a significant affect the planet oil market. Iran’s oil reserves are the fourth largest on the globe with a production capacity of around 4 million barrels every day, driving them to the second largest producer in OPEC. Iran’s oil reserves take into account approximately 10% from the world’s total proven petroleum reserves, on the rate from the 2006 production the reserves in Iran could last 98 years. More than likely Iran create about One million barrels of oil per day to the market and according to the world bank this may result in the lowering of the oil price by $10 per barrel next season.

According to Data from OPEC, at the outset of 2013 the most important oil deposits have been in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics in the reserves it isn’t always possible to bring this oil for the surface due to the limitation on extraction technologies and the cost to extract.

As China’s increased need for natural gas as an alternative to fossil fuel further reduces overall interest in oil, the rise in supply from Iran along with the continuation Saudi Arabia putting more oil onto the market should begin to see the price drop over the next Twelve months and some analysts are predicting prices will fall into the $30’s.

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