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Oil extends decline as Brexit concerns linger

Published 27/06/2016, 08:57 am
© Reuters.  Oil extends decline as Brexit concerns linger
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TOKYO, June 27 (Reuters) - Oil prices dropped around half a percent on Monday, extending sharp declines after Britain's vote to leave the European Union sparked a sharp selloff in global markets on Friday amid concerns over risk aversion.

Global financial markets plunged on Friday as results from a referendum defied bookmakers' odds to show a 52-48 percent victory for the campaign to leave a bloc Britain joined more than 40 years ago. Brent crude for August delivery LCOc1 was down 24 cents at $48.17 a barrel by 2250 GMT on Sunday, after settling down $2.50, or 4.9 percent, at $48.41 on Friday.

NYMEX crude for August delivery CLc1 was down 26 cents at $47.38 a barrel, after closing down $2.47, or 4.9 percent, on Friday.

Oil prices were also under pressure as the British pound fell anew in early Asian trading on Monday, with investors still at a loss as to what happens next now that the country has voted to leave the European Union. opened the long-delayed $5.4 billion expansion of its shipping canal amid cheering crowds on Sunday, despite looming economic uncertainty in the shipping industry and a heated battle over billions in cost overruns. funds betting on summer gasoline demand raised their bullish bets on U.S. crude futures last week, just before the market's crash on Friday on Britain's shock decision to leave the European Union, trade data showed. and China sealed a raft of energy deals during President Vladimir Putin's visit to Beijing on Saturday, strengthening economic ties while pledging to preserve the strategic balance of power among nations. oil output will reach 69 million tonnes of oil equivalent in 2016, against 67 million tonnes last year, helped in part by increased production at existing fields, state energy company Sonatrach said on Sunday.

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