Share

Oil prices rise ahead of Brexit vote

Singapore - Oil prices rose in Asia on Thursday, hours ahead of a high-stakes British vote on whether to remain in the European Union.

As with financial markets, oil traders are closely watching the referendum as analysts warn that a British exit could see the country tumble into recession with global spill over effects.

Markets tumbled last week after polls pointed to a win for the "leave" camp but they have rallied over the past four days as the pro-EU campaign has recovered momentum.

While most polls have the two sides neck and neck, bookmakers have the "remain" side as clear favourites.

Polls "are susceptible to polling bias, but that has not stopped the public from taking reported polls at face value", said IG Markets analyst Bernard Aw in a note.

"Markets appeared to be pricing in a 'remain' outcome," he added.

At about 03:20 GMT, US benchmark West Texas Intermediate was up 39 cents, at $49.52 and Brent gained 34 cents, to $50.22.

Prices closed lower Wednesday after official data showed US crude inventories had fallen less than expected.

The Department of Energy said commercial stockpiles last week dropped by 900 000 barrels, far fewer than the 1.5 million forecast by analysts, an indication that the persistent supply glut is not easing as quickly as expected.
 
There are also concerns that oil above $50 may lead more producers to renew pumping, adding on to an already saturated market.

Oil prices have rebounded since hitting lows of below $30 in February, but current levels are still a long way off the 2014 highs of more than $100.

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
18.89
+0.2%
Rand - Pound
23.84
+0.2%
Rand - Euro
20.36
+0.4%
Rand - Aus dollar
12.31
+0.3%
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