A sustained move under $53.61 will signal the use 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 then look for the selling to extend in the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the use of buyers. This can also indicate that Friday’s move was fueled by fake buying rather and merely buy stops. The upside momentum will not continue and testing $54.98 can be a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant impact on the world oil market. Iran’s oil reserves are the fourth largest on the planet with a production capacity around 4 million barrels a day, causing them to be the second largest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% with the world’s total proven petroleum reserves, at the rate of the 2006 production the reserves in Iran could last 98 years. More than likely Iran will prove to add about 1 million barrels of oil every day for the market and according to the world bank this will likely resulted in the decline in the crude oil price by $10 per barrel next season.
According to Data from OPEC, at the outset of 2013 the largest oil deposits will be in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics in the reserves it is not always possible to bring this oil for the surface because of the limitation on extraction technologies and also the cost to extract.
As China’s increased requirement for gas instead of fossil fuel further reduces overall interest in oil, the increase in supply from Iran along with the continuation Saudi Arabia putting more oil on the market should begin to see the price drop on the next 12 months and some analysts are predicting prices will belong to the $30’s.
For additional information about crude oil technical analysis today please visit net page: read this.
Be First to Comment