A sustained move under $53.61 will signal the existence of sellers showing a bull trap. This may 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 selling to extend in to the main retracement zone at $50.28 to $48.83.

A sustained make room $54.00 will indicate a good buyers. This will 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 a pipe dream for buyers from fuelled trade talks.

Lifting Iranian sanctions will have a significant influence on the world oil market. Iran’s oil reserves would be the fourth largest on the globe and they have a production capacity of around 4 million barrels every day, which makes them the second largest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% in the world’s total proven petroleum reserves, with the rate in the 2006 production the reserves in Iran could last 98 years. Probably Iran create about One million barrels of oil each day to the market and in line with the world bank this may result in the cut in the oil price by $10 per barrel the coming year.

In accordance with Data from OPEC, at the start of 2013 the largest oil deposits are in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics in the reserves it’s not at all always possible to bring this oil on the surface in the limitation on extraction technologies and the cost to extract.

As China’s increased need 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 to the market should start to see the price drop on the next 12 months and some analysts are predicting prices will belong to the $30’s.

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