Share

Oil market dips

London - Oil prices hit reverse on Tuesday, snapping two days of gains as dealers awaited this week's US crude inventories data and Britain's critical in-out EU membership referendum.

At about 13:00, world benchmark contract Brent North Sea crude for delivery in August was down 66 cents to $49.99 a barrel.

US benchmark West Texas Intermediate for July delivery shed 60c to $48.77 a barrel compared with Monday's close.

Crude futures had jumped Monday in volatile trade on rising expectations that Britain would vote to remain in the European Union on Thursday.

Polls in Britain showed on Monday the "Remain" camp gaining ground against "Leave" supporters, putting the race neck and neck just three days before the referendum.

However, new polls out Tuesday showed a razor-tight race 48 hours ahead of the vote.

"Uncertainty around the outcome of the EU referendum is... likely to have resulted in a trimming of stretched long positions in the oil market," British bank Barclays said in a note, projecting a "volatile path ahead for oil prices" over the second half of the year.

"In the event that the UK votes to leave the EU, we expect global economic growth to stagnate, and that factor would have the most influential impact on oil prices over the next 4-6 quarters," it added.

Traders are also waiting for the weekly US crude inventories report due Wednesday to gauge demand in the world's top oil consuming nation, as well as a testimony by Federal Reserve chief Janet Yellen for clues on the timing of a US interest rate increase.

A US interest rate increase tends to push the dollar higher, making oil more expensive for buyers using other currencies. That tends to weigh on oil prices.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders