Present Crude Oil Swing Chart Technical Forecast

A sustained move under $53.61 will signal a good sellers revealing 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 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 may 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 really a pipe dream for buyers from fuelled trade talks.

Lifting Iranian sanctions may significant effect on the world oil market. Iran’s oil reserves include the fourth largest in the world and they’ve a production capacity of approximately 4 million barrels per day, making them 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 from the 2006 production the reserves in Iran could last 98 years. Most likely Iran create about One million barrels of oil each day to the market and in accordance with the world bank this will lead to the cut in the oil price by $10 per barrel next season.

According to Data from OPEC, at the start 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 of the reserves it isn’t always simple to bring this oil on the surface in the limitation on extraction technologies and also the cost to extract.

As China’s increased requirement for propane as an alternative to fossil fuel further reduces overall demand for oil, the rise in supply from Iran and the continuation Saudi Arabia putting more oil on the market should see the price drop within the next Twelve months and some analysts are predicting prices will get into the $30’s.

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