A sustained move under $53.61 will signal the use 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 the main retracement zone at $50.28 to $48.83.

A sustained make room $54.00 will indicate the presence of buyers. This may also indicate that Friday’s move was fueled by fake buying rather and simply 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 effect on the planet oil market. Iran’s oil reserves will be the fourth largest on the globe and they’ve a production capacity of around 4 million barrels a day, causing them to be the second largest producer in OPEC. Iran’s oil reserves account for approximately 10% from the world’s total proven petroleum reserves, in the rate with the 2006 production the reserves in Iran could last 98 years. More than likely Iran create about 2million barrels of oil each day for the market and in line with the world bank this may result in the cut in the oil price by $10 per barrel next year.

As outlined by Data from OPEC, at the beginning of 2013 the biggest oil deposits will be in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics from the reserves it’s not at all always simple to bring this oil towards the surface due to the limitation on extraction technologies along with the cost to extract.

As China’s increased requirement for gas main as an alternative to fossil fuel further reduces overall demand for oil, the rise in supply from Iran as well as the continuation Saudi Arabia putting more oil onto the market should start to see the price drop in the next 1 year and some analysts are predicting prices will get into the $30’s.

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