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.
On
Wednesday the Federal
Reserve downgraded 2016 growth for the US and the Bank of Japan and the
Bank of England followed along today.
Lower growth signals lower demand for crude while supply continues to rise
as global producers pump and pump and pump more.
Leave the European Union in the coming weeks. This situation
has raised investors’ concerns over the outlook of the European Union and their
devalued currency.
This separation could have a huge
impact on the global economies, currency
exchange rates and on the riskier assets like oil and other commodities.
Crude oil
futures are completely in doldrums with several bearish reports.The recession in Europe,
separation of Britain,slow demand from China
and potential oil supplies are likely to put
more pressure on crude oil prices in the coming days.
Canada, Libya and Nigeria
are coming back to market.
A note by Goldman
Sachs weighed on sentiment in oil, with the Wall Street firm saying crude needs to stay within
$45-$50 to ensure a supply deficit in the second half of 2016.
There is
plenty of oil flowing into the market with Iran's exports on track to
hit the highest in almost
4½ years in June.
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