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