Present Crude Oil Swing Chart Technical Forecast

A sustained move under $53.61 will signal the presence of sellers showing a bull trap. This may trigger a labored break with potential targets weighing $52.40, $51.29 and $50.66. If $50.66 fails as support then look for the supplying extend to the main retracement zone at $50.28 to $48.83.

A sustained move over $54.00 will indicate the presence of buyers. This will likely also indicate that Friday’s move was fueled by fake buying rather and buy stops. The upside momentum is not going to continue and testing $54.98 is really a fantasy for buyers from fuelled trade talks.

Lifting Iranian sanctions have a significant influence on the globe oil market. Iran’s oil reserves are the fourth largest on the globe and the’ve a production capacity of about 4 million barrels per day, which makes them the second largest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% of the world’s total proven petroleum reserves, at the rate of the 2006 production the reserves in Iran could last 98 years. Almost certainly Iran will prove to add about A million barrels of oil each day to the market and based on the world bank this will lead to the cut in the crude oil price by $10 per barrel the coming year.

As outlined by Data from OPEC, at the start of 2013 the biggest oil deposits come in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics of the reserves it’s not at all always possible to bring this oil to the surface because of the limitation on extraction technologies and the cost to extract.

As China’s increased interest in gas main rather than fossil fuel further reduces overall requirement for oil, the rise in supply from Iran as well as the continuation Saudi Arabia putting more oil on the market should start to see the price drop in the next 12 months and some analysts are predicting prices will get into the $30’s.

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