The current Crude Oil Swing Chart Technical Forecast

A sustained move under $53.61 will signal a good sellers revealing 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 arehorrified to find that the supplying extend in the main retracement zone at $50.28 to $48.83.

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

Lifting Iranian sanctions may significant effect on the world oil market. Iran’s oil reserves will be the fourth largest on the globe and they’ve a production capacity around 4 million barrels each day, driving them to the second largest producer in OPEC. Iran’s oil reserves account for approximately 10% from 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 each day to the market and in accordance with the world bank this may resulted in cut in the crude oil price by $10 per barrel next year.

As outlined by Data from OPEC, at the start of 2013 the largest oil deposits are in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to the characteristics in the reserves it’s not always possible to bring this oil to the surface due to the limitation on extraction technologies along with the cost to extract.

As China’s increased requirement 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 onto the market should understand the price drop in the next Twelve months and some analysts are predicting prices will fall into the $30’s.

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