Present Crude Oil Swing Chart Technical Forecast

A sustained move under $53.61 will signal the existence of sellers which indicates 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 then look for the selling to extend into the main retracement zone at $50.28 to $48.83.

A sustained make room $54.00 will indicate the use of buyers. This will 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 is really a pipe dream for buyers from fuelled trade talks.

Lifting Iranian sanctions may significant impact on the globe oil market. Iran’s oil reserves would be the fourth largest on the planet and they’ve a production capacity of about 4 million barrels every day, making them the second largest producer in OPEC. Iran’s oil reserves take into account approximately 10% of the world’s total proven petroleum reserves, in the rate from the 2006 production the reserves in Iran could last 98 years. Probably Iran include about 2million barrels of oil per day on the market and according to the world bank this will lead to the decline in the oil price by $10 per barrel pick up.

As outlined by Data from OPEC, at the beginning of 2013 the biggest oil deposits have been 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 very easy to bring this oil for the surface given the limitation on extraction technologies and also the cost to extract.

As China’s increased need for gas as an alternative to fossil fuel further reduces overall interest in oil, the increase in supply from Iran and also the continuation Saudi Arabia putting more oil on top of the market should see the price drop on the next 12 months plus some analysts are predicting prices will get into the $30’s.

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