A sustained move under $53.61 will signal the existence of sellers revealing a bull trap. This will likely trigger a labored break with potential targets weighing $52.40, $51.29 and $50.66. If $50.66 fails as support discover the supplying extend into the main retracement zone at $50.28 to $48.83.

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

Lifting Iranian sanctions will have a significant influence on the world oil market. Iran’s oil reserves will be the fourth largest on earth and the’ve a production capacity of about 4 million barrels a day, causing them to be the second biggest producer in OPEC. Iran’s oil reserves take into account approximately 10% from the world’s total proven petroleum reserves, on 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 for the market and according to the world bank this will likely result in the lowering of the oil price by $10 per barrel next year.

In accordance with Data from OPEC, at the beginning 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 from the reserves it’s not at all always easy 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 propane rather than fossil fuel further reduces overall need for oil, the increase in supply from Iran as well as the continuation Saudi Arabia putting more oil to the market should start to see the price drop on the next 1 year and some analysts are predicting prices will fall into the $30’s.

Check out about oil prices forecast check out this web site.