• Oil undergoes some light profit-taking after rallying above $77.00 on Monday. 
• Analysts are issuing concerns about supply after the sudden disruption of Libyan barrels in the markets.
• The US Dollar Index trades back below 101.00 as its recovery eases already. 

Oil traders appear to be taking profits on Tuesday after prices have been undergoing a very steep three-day surge which retraced ahead of a pivotal technical area near $77.60. Markets are digesting the sudden disruption in Libyan Oil production in a political local spat between the Benghazi government and the officially-recognised government seating in Tripoli over who should become the next Chairman at the central bank. Analysts said that Libya's supply outage could not easily be replaced as it concerns Light Sweet Crude, which is very high in demand because it can more easily be fractionated into gasoline or kerosene. 

The US Dollar Index (DXY) is meanwhile undergoing some profit-taking as well after its recovery only lasted one day. Markets are still going all in on substantial interest-rate cuts from the US Federal Reserve (Fed). In this scenario, the biggest risk is that strong incoming US data might ease or even scrub future rate cuts in case the US economy overheats again.