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Sentiment in the commodity market remains fragile amid rising geopolitical tensions as crude oil fell as the prospect of rising supply rattled sentiment, strategists at ANZ Bank apprise.

Read: Nymex Light Crude Oil flirting with the April high at 35.18 – Commerzbank

Key quotes

“Yesterday it emerged that Russia was determined to ease back on output cuts in July. Even though this complies with the supply agreement, it disappointed the market.” 

“Some confidence in the supply agreement was strengthened after Russia’s President Putin and Saudi Arabia’s Crown Prince bin Salman reiterated their cooperation.”

“The market was reminded of the fragile nature of the recovery, with signs that gasoline demand in the US remains low. The US Memorial Day holiday usually marks the start of the peak demand season. However, early estimates suggest gasoline demand was down by nearly 30% from last year as people stay close to home.”