Pritam Kumar Patnaik, business head at Reliance Commodities shared his views and outlook on the commodities market.

“We started off this week with crude oil rallying to a level of May 2018 and it basically rallied on the back of the fact of the impending Iran sanctions which are there," Patnaik said.

The irregular supply from Venezuela was also propping up the prices, he said, adding that dropping inventories in the US was one of the major reasons which supported the crude oil prices.

“Iraq which happens to be the second largest producer of oil in the Organisation of the Petroleum Exporting Countries (OPEC) has increased production by almost about 1,000 barrels per day and taken up the production close to about 3.43 million barrels per day in Iraq, it puts pressure on the crude oil prices,” he added.

"I think it is a case where we should buy on dips clearly as a strategy,” said Patnaik.