Oil prices slumped by more than six per cent on Friday after Britain voted to leave the European Union, raising fears of a broader economic slowdown that could reduce demand for oil. 
 
Financial markets have been worried for months about what Brexit, or a British exit from the European Union, would mean for Europe&#39;s future, but were clearly not fully factoring in the risk of a leave vote. 
 
British Prime Minister David Cameron, who campaigned to remain in the EU, said he would stand down by October. 
 
Brent crude was down $1.90 at $49.01 a barrel. US crude was down $1.90 at $48.21 a barrel. 
 
Earlier in the day, both contracts were down by more than $3, or over six per cent, the biggest intra-day declines for both since April 18, when a meeting of top global oil producers failed to agree on an output freeze. 
 
Sterling sank 10 per cent in value to its weakest since the mid-1980s. The FTSE 100 fell more than eight per cent at the open, with banks among the hardest hit. 
 
&quot;In the interim, it&#39;s down for everything from equities to oil. Bad economies in the UK and Europe are not good for oil and there could be a domino effect on other economies in Asia,&quot; said IHS oil analyst Victor Shum. 
 
Some analysts said oil could face further downward pressure. 
 
&quot;Our view is that we have not yet seen the low oil price of the day with Brent likely to trade down towards $45 or lower before we have seen the worst of it,&quot; Bjarne Schieldrop, chief commodity analyst at SEB, said in note to clients. 
 
The vote to break with Europe is set to usher in deep uncertainty over trade and investment and fuel the rise of anti-EU movements across the continent. 
 
&quot;Today, it&#39;s all about sentiment and everybody looking at each and saying &#39;what&#39;s next?&#39;&quot; said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam. 
 
&quot;It will be interesting how we trade next week, because then the first impact is behind us and at some point the market should return to look at fundamentals again,&quot; Cleef added. 
 
Analysts have said that once the market refocuses on fundamentals, oil was likely to fall, given abundant stocks around the world are shrinking very slowly despite large production outages in countries like Nigeria. 
 
(Reuters)

Brent crude was down $1.90 a barrel while US crude was down $1.90 a barrel

Oil prices slumped by more than six per cent on Friday after Britain voted to leave the European Union, raising fears of a broader economic slowdown that could reduce demand for oil. Financial markets have been worried for months about what Brexit, or a British exit from the European Union, would mean for Europe's future, but were clearly not fully factoring in the risk of a leave vote. British Prime Minister David Cameron, who campaigned to remain in the EU, said he would stand down by October. Brent crude was down $1.90 at $49.01 a barrel. US crude was down $1.90 at $48.21 a barrel. Earlier in the day, both contracts were down by more than $3, or over six per cent, the biggest intra-day declines for both since April 18, when a meeting of top global oil producers failed to agree on an output freeze. Sterling sank 10 per cent in value to its weakest since the mid-1980s. The FTSE 100 fell more than eight per cent at the open, with banks among the hardest hit. "In the interim, it's down for everything from equities to oil. Bad economies in the UK and Europe are not good for oil and there could be a domino effect on other economies in Asia," said IHS oil analyst Victor Shum. Some analysts said oil could face further downward pressure. "Our view is that we have not yet seen the low oil price of the day with Brent likely to trade down towards $45 or lower before we have seen the worst of it," Bjarne Schieldrop, chief commodity analyst at SEB, said in note to clients. The vote to break with Europe is set to usher in deep uncertainty over trade and investment and fuel the rise of anti-EU movements across the continent. "Today, it's all about sentiment and everybody looking at each and saying 'what's next?'" said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam. "It will be interesting how we trade next week, because then the first impact is behind us and at some point the market should return to look at fundamentals again," Cleef added. Analysts have said that once the market refocuses on fundamentals, oil was likely to fall, given abundant stocks around the world are shrinking very slowly despite large production outages in countries like Nigeria. (Reuters)

Oil prices dive after Britain votes to leave EU

Crude oil prices rose today for the first time in seven days as markets took a breather from concerns about the impact of Britain&#39;s possible exit from the European Union. 
 
Brent crude futures were up 59 cents, or 1.3 per cent, at $47.78 a barrel around 0650 GMT after slumping 3.6 per cent in the previous session. The contract is on track to fall nearly 5.5 per cent next week. 
 
US West Texas Intermediate crude futures rose 37 cents, or 0.8 per cent, to $46.58. The contract fell 3.8 per cent in the previous session and prices are down around 5 per cent so far this week. 
 
The British pound rose from a two-month low after campaigning for next week&#39;s so-called Brexit vote next week was suspended following the murder on Thursday of UK member of parliament Jo Cox, who was a vocal advocate for Britain to stay in the European Union. 
 
Commodities across the board also posted gains, while equity benchmarks including Japan&#39;s Nikkei stock average rose. 
 
&quot;We need to brace ourselves for further volatility,&quot; said Ben Le Brun, market analyst at OptionsXpress in Sydney. 
 
&quot;We are seeing a bit of a recovery now with maybe some short positions being unwound. It is certainly going to be a wild ride for investors and traders going into the June 23 decision,&quot; he said. 
 
Still, global oil majors Chevron Corp and Royal Dutch Shell Plc are putting small refineries on the auction block as they look to trim lower-margin assets in the face of headwinds from rising crude oil prices. 
 
Chevron, the second largest US oil company, is soliciting interest in its Burnaby, British Columbia, refinery and gasoline stations, the company told Reuters. 
 
Shell is looking for buyers for its Martinez, California, refinery, two people familiar with the situation told Reuters. Shell declined to comment. 
(Reuters)

Market takes breather from concerns about the impact of Britain's possible exit from the EU

Crude oil prices rose today for the first time in seven days as markets took a breather from concerns about the impact of Britain's possible exit from the European Union. Brent crude futures were up 59 cents, or 1.3 per cent, at $47.78 a barrel around 0650 GMT after slumping 3.6 per cent in the previous session. The contract is on track to fall nearly 5.5 per cent next week. US West Texas Intermediate crude futures rose 37 cents, or 0.8 per cent, to $46.58. The contract fell 3.8 per cent in the previous session and prices are down around 5 per cent so far this week. The British pound rose from a two-month low after campaigning for next week's so-called Brexit vote next week was suspended following the murder on Thursday of UK member of parliament Jo Cox, who was a vocal advocate for Britain to stay in the European Union. Commodities across the board also posted gains, while equity benchmarks including Japan's Nikkei stock average rose. "We need to brace ourselves for further volatility," said Ben Le Brun, market analyst at OptionsXpress in Sydney. "We are seeing a bit of a recovery now with maybe some short positions being unwound. It is certainly going to be a wild ride for investors and traders going into the June 23 decision," he said. Still, global oil majors Chevron Corp and Royal Dutch Shell Plc are putting small refineries on the auction block as they look to trim lower-margin assets in the face of headwinds from rising crude oil prices. Chevron, the second largest US oil company, is soliciting interest in its Burnaby, British Columbia, refinery and gasoline stations, the company told Reuters. Shell is looking for buyers for its Martinez, California, refinery, two people familiar with the situation told Reuters. Shell declined to comment. (Reuters)

Crude oil price rises for first time in 7 days

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