The current Crude Oil Swing Chart Technical Forecast

A sustained move under $53.61 will signal the presence of sellers revealing a bull trap. This will likely 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 selling to extend into the main retracement zone at $50.28 to $48.83.

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

Lifting Iranian sanctions will have a significant affect the globe oil market. Iran’s oil reserves include the fourth largest on the planet and they’ve a production capacity around 4 million barrels a day, which makes them the second biggest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% with the world’s total proven petroleum reserves, at the rate of the 2006 production the reserves in Iran could last 98 years. Probably Iran create about A million barrels of oil every day towards the market and according to the world bank this may lead to the cut in the crude oil price by $10 per barrel pick up.

Based on Data from OPEC, at the beginning of 2013 the most important oil deposits are in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics of the reserves it isn’t always easy to bring this oil to the surface given the limitation on extraction technologies and also the cost to extract.

As China’s increased requirement for gas main instead of fossil fuel further reduces overall interest in oil, the increase in supply from Iran along with the continuation Saudi Arabia putting more oil to the market should start to see the price drop over the next 1 year and several analysts are predicting prices will fall under the $30’s.

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