Oil prices up in Asia but traders on edge over Brexit cri­sis

Pakistan Observer - - ECONOMY WATCH -

SIN­GA­PORE—Oil prices re­bounded in Asia Tues­day on bar­gain hunt­ing but tremors from Bri­tain’s shock vote last week to leave the Euro­pean Union con­tinue to dampen buy­ing sen­ti­ment. The pick-up in the black gold came in line with a re­cov­ery in Asian stock mar­kets as spec­u­la­tion swirls that author­i­ties could un­veil stim­u­lus mea­sures to off­set the im­pact of the so-called Brexit. At around 0635 GMT, US bench­mark West Texas In­ter­me­di­ate rose 63 cents, or 1.36 per­cent, to $46.96 and Brent gained 54 cents, or 1.15 per­cent, to $47.70.

Both con­tracts have slumped around 10 per­cent since hit­ting 2016 highs ear­lier this month, with Thurs­day’s vote ac­cel­er­at­ing the sell­ing. “The tur­moil in the fi­nan­cial mar­kets, trig­gered by the UK ref­er­en­dum re­sults, is keep­ing the pres­sure on oil prices, which look set to clock a monthly loss in June,” said IG Mar­kets Sin­ga­pore an­a­lyst Bernard Aw. “The lack of guid­ance from the UK gov­ern­ment and the prospects of a lead­er­ship strug­gle con­tin­ued to dampen in­vestors’ ap­petite, and this should per­sist through the week,” he told AFP.—AFP

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