As Britain exits EU, the demand for oil may plunge

As Britain exits EU, the demand for oil may plunge

Brexit Blues have forced oil prices to plunge by more than 6 percent on Friday. As Britain voted to leave the European Union, it has raised potential fears of a broader economic slowdown that could reduce demand for oil. The break-up with Europe may cause deep uncertainty over trade and investment and fuel.

Brent crude LCOc1 was down $1.90 at $49.01 a barrel at Friday morning. U.S. crude CLc1 was down $1.90 at $48.21 a barrel. Moreover, oil could face further downward pressure.

Markets have been trying to understand about what Brexit, or a British exit from the European Union, would mean for the country’s trading with Europe’s economy.

Global markets are down for everything from equities to oil, said experts. It is expected that the bad economies in the UK and Europe are not good for oil and there could be a domino effect on other economies in Asia.

Leave a Reply

Your email address will not be published.