Todays Crude Oil Swing Chart Technical Forecast

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 weighing $52.40, $51.29 and $50.66. If $50.66 fails as support discover the selling to extend in to the main retracement zone at $50.28 to $48.83.

A sustained move over $54.00 will indicate the use of buyers. This will likely 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 really a fantasy for buyers from fuelled trade talks.

Lifting Iranian sanctions have a significant effect on the planet oil market. Iran’s oil reserves include the fourth largest on the globe and they have a production capacity of about 4 million barrels each day, causing them to be the second biggest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% of the world’s total proven petroleum reserves, at the rate with the 2006 production the reserves in Iran could last 98 years. More than likely Iran will add about One million barrels of oil every day for the market and according to the world bank this can result in the decline in the crude oil price by $10 per barrel pick up.

Based on Data from OPEC, at the start of 2013 the most important oil deposits are in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics with the reserves it’s not always possible to bring this oil for the surface due to the limitation on extraction technologies along with the cost to extract.

As China’s increased interest in natural gas rather than fossil fuel further reduces overall need for oil, the rise in supply from Iran along with the continuation Saudi Arabia putting more oil to the market should start to see the price drop within the next 1 year and some analysts are predicting prices will belong to the $30’s.

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