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Commodity rally won't last as fundamentals unchanged: analysts

They see full recovery in oil market only in H2 this year or next; current US$40 price proves to be sticky threshold

Published Wed, Mar 9, 2016 · 09:50 PM

Singapore

Oil prices clung to the US$40 threshold on Wednesday, cheered by a possible agreement between the world's largest oil producers to freeze output, even as analysts warned that the commodity rally in recent weeks is not sustainable.

Supply and demand fundamentals in commodity markets have remained largely unchanged, they said, and a full recovery in the oil market would probably take place only in the second half of this year or next.