The current Crude Oil Swing Chart Technical Forecast

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

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

Lifting Iranian sanctions may significant affect the world oil market. Iran’s oil reserves include the fourth largest on the globe with a production capacity of around 4 million barrels every day, which makes them the second biggest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% of the world’s total proven petroleum reserves, in the rate in the 2006 production the reserves in Iran could last 98 years. Probably Iran create about 2million barrels of oil per day to the market and based on the world bank this will likely result in the lowering of the crude oil price by $10 per barrel next season.

Based on Data from OPEC, at the start 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%. As a result of characteristics from the reserves it isn’t always very easy to bring this oil towards the surface due to the limitation on extraction technologies as well as the cost to extract.

As China’s increased demand for natural gas 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 top of the market should start to see the price drop in the next 1 year and a few analysts are predicting prices will get into the $30’s.

More info about crude oil price update you can check our website.