Oil: Bearish pressures intact, down -5% on Brexit

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By Dhwani Mehta

Oil: Bearish pressures intact, down -5% on Brexit

The oil benchmarks on both sides of the Atlantic remain deep in the red, consolidating the massive meltdown triggered by UK’s decision to leave the European Union (EUR) in a landmark event held yesterday.

Markets fret over the demand for the black gold from Europe amid Brexit induced instability in the bloc’s economic outlook, which keeps the prices under heavy selling pressure. Europe accounts for almost 14% of the total global oil demand.

IHS oil analyst Victor Shum, noted, “In the interim, it’s down for everything from equities to oil. Bad economies in the UK and Europe is not good for oil and there could be a domino effect on other economies in Asia.”

Further keeping the downside intact, the oil prices are weighed by a stronger US dollar across the board, with the USD index now rallying +2.30% to 95.50 levels.

News Source: http://www.investing.com/

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