A sustained move under $53.61 will signal the presence of sellers indicating a bull trap. This can 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 supplying extend in to 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 merely buy stops. The upside momentum is not going to continue and testing $54.98 is a pipe dream 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 earth with a production capacity of approximately 4 million barrels a day, making them the second biggest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% with the world’s total proven petroleum reserves, with the rate from the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran include about One million barrels of oil every day towards the market and in line with the world bank this can result in the lowering of the crude oil price by $10 per barrel pick up.

In accordance with Data from OPEC, at the beginning 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 of the reserves it is not always simple to bring this oil towards the surface because of the limitation on extraction technologies and the cost to extract.

As China’s increased requirement for propane as an option to fossil fuel further reduces overall interest in oil, the rise in supply from Iran as well as the continuation Saudi Arabia putting more oil onto the market should begin to see the price drop in the next 1 year and some analysts are predicting prices will fall under the $30’s.

For more information about oil prices forecast view the best web portal.