Markets

TSX May Open Higher As Oil Climbs

Canada's benchmark index looked set to open higher on Tuesday, as oil prices received support from news that Saudi Arabia would cut oil exports.

Stock futures for the September quarter on the S&P TSX index were up 0.1% recently.

Oil was up by nearly 2%, and Action Economics said gain came on the back of news that Saudi Arabia would cut oil exports by up to 1 million barrels per day in August. At the OPEC/NOPEC meeting in St. Petersburg on Monday, Nigeria agreed to cap output at 1.8 million barrels per day, although is currently pumping 1.7 million barrels per day. On the other side of the coin, Iraq continues to increase output, pumping 4.5 million barrels per day in June and aiming for 5.0 million barrels per day by the end of the year, well above it current quota of 4.35 million barrels. In a sign that U.S. shale production may be steadying, Anadarko Petroleum announced it would cut $300 million from its capital spending plan this year.

The TSX lost 54 points on Monday, dragged down mostly by materials.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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