A sustained move under $53.61 will signal the existence of sellers which indicates 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 arehorrified to find that the supplying extend into the main retracement zone at $50.28 to $48.83.

A sustained move over $54.00 will indicate a good buyers. This may also indicate that Friday’s move was fueled by fake buying rather and merely buy stops. The upside momentum will not likely continue and testing $54.98 can be a fantasy for buyers from fuelled trade talks.

Lifting Iranian sanctions have a significant effect on the entire world oil market. Iran’s oil reserves include the fourth largest in the world and the’ve a production capacity of about 4 million barrels per day, driving them to the second largest producer in OPEC. Iran’s oil reserves take into account approximately 10% in the world’s total proven petroleum reserves, in the rate with the 2006 production the reserves in Iran could last 98 years. Probably Iran will prove to add about One million barrels of oil each day for the market and based on the world bank this can lead to the lowering of the oil price by $10 per barrel pick up.

As outlined by Data from OPEC, at the beginning of 2013 the biggest oil deposits will be in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics from the reserves it isn’t always very easy to bring this oil on the surface because of the limitation on extraction technologies and the cost to extract.

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

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