Present Crude Oil Swing Chart Technical Forecast

A sustained move under $53.61 will signal the presence of sellers which indicates a bull trap. This may 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 in the main retracement zone at $50.28 to $48.83.

A sustained make room $54.00 will indicate the presence of buyers. This will also indicate that Friday’s move was fueled by fake buying rather and just buy stops. The upside momentum will not continue and testing $54.98 is a fantasy for buyers from fuelled trade talks.

Lifting Iranian sanctions may significant impact on the planet oil market. Iran’s oil reserves will be the fourth largest on the planet and the’ve a production capacity around 4 million barrels a day, driving them to the second largest producer in OPEC. Iran’s oil reserves are the cause of approximately 10% with the world’s total proven petroleum reserves, in the rate with the 2006 production the reserves in Iran could last 98 years. Most likely Iran will add about 2million barrels of oil every day for the market and in line with the world bank this can resulted in cut in the oil price by $10 per barrel next season.

Based on Data from OPEC, at the beginning of 2013 the biggest oil deposits will be in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. As a result of characteristics from the reserves it’s not always easy to bring this oil on the surface due to the limitation on extraction technologies and also the cost to extract.

As China’s increased need for gas main rather than fossil fuel further reduces overall demand for oil, the increase in supply from Iran along with the continuation Saudi Arabia putting more oil on the market should understand the price drop in the next 1 year and several analysts are predicting prices will get into the $30’s.

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