Oil prices and its supplies are perhaps the most sensitive to global events and the EU referendum that is being vote on by the British public today is one of the reasons why it has caused a flutter in the US oil markets. According to lates reports from Bloomberg, oil prices in the US has traded roundabout the $50 mark today and the supply of oil to the country has also dropped since investors are on tenterhooks about the results of the EU referendum in the United Kingdom.
The report stated, "Futures for August delivery rose as much as 1.7 percent in New York, as European stocks gained for a fifth day and the euro added 0.8 percent against the dollar. U.S. crude production fell for 14 of the last 15 weeks to the lowest since September 2014 and inventories slid by 917,000 barrels last week, according to data from the Energy Information Administration. Past opinion polls indicated the U.K. referendum, known as Brexit, could go either way." It went on to state, "Oil has fluctuated the past week as uncertainty about the outcome of the U.K. vote drove volatility in global markets. Crude in New York has advanced about 90 percent from the lowest level in 12 years in February as disruptions from Nigeria to Canada and falling output in the U.S. eased a global surplus."
Amrita Sen, the chief oil analyst employed with a leading consultancy firm opined, "Production declines continue to accelerate, But crude demand has faltered and so crude stockdraws will moderate for now." The numbers quoted by Bloomberg paints the picture perfectly, "West Texas Intermediate for August delivery gained as much as 82 cents to $49.95 a barrel on the New York Mercantile Exchange and was at $49.94 at 11:31 a.m. London time. The contract lost 72 cents to $49.13 on Wednesday. Total volume traded was about 22 percent below the 100-day average." Although there is uncertainty in the markets regarding the EU referendum, plenty of reports have stated over the past few days that Great Britain is likely to vote for 'stay' according to recent polls.
