MARKET OUTLOOK OF CRUDEOIL FOR 17-18 AUG 2016

	R2	R1	S1		S2	TREND
CRUDEOIL	3150	3120	3080		3050	SIDEWAYS

CRUDEOIL: Crude Oil settled up nearly 2 percent on Tuesday, hitting five-week highs for a second straight day as sources at OPEC spoke of Saudi Arabia's desire for higher crude prices while Russia met the producer group to discuss the market. The dollar's tumble to an eight-week low also supported crude prices, as did the loss of more than 700,000 barrels per day (bpd) in Nigerian output to militant attacks and pipeline problems. The Organization of the Petroleum Exporting Countries will probably revive talks on freezing oil output levels when it meets non-OPEC nations next month, OPEC sources told Reuters, citing Saudi Arabia's wish for higher prices. Russian and OPEC energy officials discussed oil markets at a meeting in Vienna, Russia's Energy Ministry said. Another "energy dialogue" between Russia and OPEC has been scheduled there for October. Prices pared some gains in

aftermarket trade after data from the American Petroleum Institute showing an unexpected draw in U.S. crude stockpiles was overshadowed by surprise hefty builds in gasoline and distillates,  indicating the glut in refined oil products was growing. Many analysts were skeptical producers would cut a deal. An OPEC production freeze plan in April was scuttled by a Saudi Arabia that was keen then to protect market share.

Outlook:   We expect crude oil prices to trade positive on the back of speculation intensified over potential producer action to support prices amid a crude glut.