Expect Crude Oil to trade positive: Sushil Finance

Sushil Finance's report on Crude Oil

Oil settled higher on Monday after dollar fluctuations and the restart of some Libyan oil fields caused the market to vacillate, with prices testing lower before rallying to levels just below three - year highs. Traditionally, a weaker dollar spurs buying of dollar - based commodities as they become cheaper for holders of other currencies. However, buying as the dollar weakens has been less frequent in recent months. Earlier in the day, resumption of output from Libya's As - Sarah fields weighed on the market. Production at As - Sarah resumed on Sunday and was expected to add 55,000 barrels per day by Monday. Brent is particularly sensitive to changes in output from Libya, as most Libyan crude is priced against Brent. Supportive to the market were comments from top exporter Saudi Arabia that the Organization of the Petroleum Exporting Countries and other producers would continue to cooperate on oil output cuts beyond 2018. The deal began in January 2017. Saudi Energy Minister Khalid al - Falih said market rebalancing might not occur until 2019, suggesting it would take longer than OPEC had previously indicated.

Outlook
We expect crude oil prices to trade positive on the back of expectations OPEC and Russia are tightening supplies. For all commodities report, click here

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