Oil prices dip ahead of Bri­tish EU vote, US stock­piles

Pakistan Observer - - ECONOMY WATCH -

SIN­GA­PORE—Oil prices fell in Asia Tues­day, snap­ping two days of gains, ahead of a re­port on US crude in­ven­to­ries and the Bri­tish ref­er­en­dum on whether to stay in the Euro­pean Union. Wor­ries that Bri­tons will vote to leave the EU on Thurs­day has frayed nerves, and global in­vest­ment ti­tans Li Kash­ing and Ge­orge Soros warned of eco­nomic doom if the coun­try ex­its. “Un­cer­tainty around the out­come of the EU ref­er­en­dum is... likely to have re­sulted in a trim­ming of stretched long po­si­tions in the oil mar­ket,” Bri­tish bank Bar­clays said in a note, pro­ject­ing a “volatile path ahead for oil prices” over the sec­ond half of the year.

“In the event that the UK votes to leave the EU, we ex­pect global eco­nomic growth to stag­nate, and that fac­tor would have the most in­flu­en­tial im­pact on oil prices over the next 4-6 quar­ters,” it added. At about 0750 GMT, US bench­mark West Texas In­ter­me­di­ate fell 41 cents, or 0.83 per­cent, to $48.96 and Brent was down 48 cents, or 0.95 per­cent, at $50.17. “Oil has been dom­i­nated by gen­eral mar­ket sen­ti­ment over the past week and less by spe­cific oil fac­tors,” An­gus Nicholson, a mar­kets an­a­lyst in Mel­bourne at IG Ltd told Bloomberg News.—AFP

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