The current Crude Oil Swing Chart Technical Forecast
A sustained move under $53.61 will signal the use of sellers indicating a bull trap. This can 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 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 can also indicate that Friday’s move was fueled by fake buying rather and merely buy stops. The upside momentum is not going to continue and testing $54.98 is often a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions may significant affect the globe oil market. Iran’s oil reserves will be the fourth largest on earth and they have a production capacity of approximately 4 million barrels a day, causing them to be the second biggest producer in OPEC. Iran’s oil reserves take into account approximately 10% from the world’s total proven petroleum reserves, on the rate in the 2006 production the reserves in Iran could last 98 years. Probably Iran will add about A million barrels of oil every day to the market and based on the world bank this will resulted in lowering of the oil price by $10 per barrel pick up.
Based on Data from OPEC, at the beginning of 2013 the largest oil deposits have been in Venezuela being 20% of worldwide oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics in the reserves it isn’t always very easy to bring this oil to the surface in the limitation on extraction technologies and the cost to extract.
As China’s increased interest in natural gas as an alternative to fossil fuel further reduces overall demand for oil, the increase in supply from Iran and the continuation Saudi Arabia putting more oil on the market should see the price drop over the next Twelve months plus some analysts are predicting prices will fall under the $30’s.
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