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AE

TSX May Open Lower As Oil Slips on Middle East Tensions

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.

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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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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