Todays Crude Oil Swing Chart Technical Forecast
A sustained move under $53.61 will signal the existence of sellers which indicates a bull trap. This will 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 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 will not continue and testing $54.98 is really a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant effect on the globe oil market. Iran’s oil reserves will be the fourth largest on the planet and they have a production capacity of around 4 million barrels per day, driving them to the second largest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% of 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 according to the world bank this will resulted in the decline in the crude oil price by $10 per barrel the coming year.
Based on Data from OPEC, at the start of 2013 the greatest oil deposits will be in Venezuela being 20% of world 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 in the limitation on extraction technologies and the cost to extract.
As China’s increased demand for natural gas as an alternative to fossil fuel further reduces overall requirement for oil, the rise in supply from Iran and also the continuation Saudi Arabia putting more oil to the market should understand the price drop within the next Yr and a few analysts are predicting prices will fall into the $30’s.
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