The current Crude Oil Swing Chart Technical Forecast
A sustained move under $53.61 will signal the existence of sellers indicating a bull trap. This will likely trigger a labored break with potential targets coming in at $52.40, $51.29 and $50.66. If $50.66 fails as support arehorrified to find that the supplying extend into the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the presence of buyers. This will likely also indicate that Friday’s move was fueled by fake buying rather and just 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 will have a significant impact on the planet oil market. Iran’s oil reserves will be the fourth largest on the planet and they’ve a production capacity of about 4 million barrels every day, which makes them the second largest producer in OPEC. Iran’s oil reserves account for approximately 10% in the world’s total proven petroleum reserves, in the rate from the 2006 production the reserves in Iran could last 98 years. More than likely Iran will add about A million barrels of oil a day on the market and according to the world bank this will result in the cut in the oil price by $10 per barrel next year.
Based on Data from OPEC, at the outset of 2013 the largest oil deposits will be in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics from the reserves it isn’t always easy to bring this oil to the surface because of the limitation on extraction technologies as well as the cost to extract.
As China’s increased interest in gas as an option to fossil fuel further reduces overall interest in oil, the rise in supply from Iran and also the continuation Saudi Arabia putting more oil to the market should start to see the price drop on the next 12 months and a few analysts are predicting prices will fall into the $30’s.
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