Oil ex­tends slide on wor­ries about im­pact of Brexit

Pakistan Observer - - ECONOMY WATCH -

SIN­GA­PORE—Oil prices suf­fered fresh losses in Asian trade Mon­day as the fall­out from last week’s de­ci­sion by Bri­tain to leave the Euro­pean Union bat­ters con­fi­dence and ush­ers in a pe­riod of un­cer­tainty. Global mar­kets took a beat­ing Fri­day, with some $2.1 tril­lion wiped off val­u­a­tions and the Bri­tish pound plung­ing to 31-year lows against the dol­lar, while oil prices slumped more than five per­cent. And on Mon­day crude fell fur­ther. At about 0400 GMT, the US bench­mark West Texas In­ter­me­di­ate fell 26 cents, or 0.55 per­cent, to $47.38 and Brent shed 15 cents, or 0.15 per­cent, to $48.26.

Both con­tracts have tum­bled al­most 10 per­cent from their 2016 highs touched ear­lier this month. “While the oil mar­ket fun­da­men­tals will en­sure no ma­jor drop in the price of crude, as the UK ac­counts for less than two per­cent of global de­mand, the oil mar­kets are likely to re­main under pres­sure un­til the volatil­ity in the fi­nan­cial mar­kets comes down,” said EY Ser­vices oil and gas an­a­lyst San­jeev Gupta. “Ev­ery­thing is caught up in Brexit,” Evan Lu­cas, a mar­ket strate­gist at IG Ltd. in Mel­bourne told Bloomberg News.—AFP

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