Canada's benchmark index looked set to open lower on Tuesday as oil continues to take a beating from Middle Eastern tensions.
Action Economics ( AE ) said Saudi Arabia's cutting of ties with Qatar remains a market uncertainty, leading to the possibility that the OPEC/NOPEC output cut agreement could be jeopardized, which has been the recent driver of price weakness. U.S. production continues to ramp up as well, as witnessed by 20-straight weeks of new U.S. rigs coming back on line. Without clarity on the Saudi/Qatar front, the downside would appear to be at risk for now, AE added.
The TSX lost 32 points on Monday, dragged down mostly by materials and financials.
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