The current Crude Oil Swing Chart Technical Forecast

A sustained move under $53.61 will signal the use of sellers revealing 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 into the main retracement zone at $50.28 to $48.83.

A sustained move over $54.00 will indicate the use of buyers. This will also indicate that Friday’s move was fueled by fake buying rather and buy stops. The upside momentum won’t continue and testing $54.98 can be a pipe dream for buyers from fuelled trade talks.

Lifting Iranian sanctions have a significant affect the world oil market. Iran’s oil reserves include the fourth largest on earth and they have a production capacity of about 4 million barrels per day, causing them to be the second biggest producer in OPEC. Iran’s oil reserves account for approximately 10% in the world’s total proven petroleum reserves, in 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 on the market and based on the world bank this can resulted in the lowering of the crude oil price by $10 per barrel next season.

As outlined by Data from OPEC, at the outset of 2013 the most important oil deposits have been in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics of the reserves it isn’t always easy to bring this oil towards the surface because of the limitation on extraction technologies and also the cost to extract.

As China’s increased requirement for gas main as an alternative to fossil fuel further reduces overall need for 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 within the next Yr and a few analysts are predicting prices will fall into the $30’s.

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