🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Oil prices steady after slump on Brexit, supply risks

Published 06/07/2016, 10:32 am
Updated 06/07/2016, 10:40 am
© Reuters.  Oil prices steady after slump on Brexit, supply risks
USD/JPY
-
LCO
-
CL
-

TOKYO, July 6 (Reuters) - Oil prices were up slightly in early Asian trading on Wednesday after sharp falls in the prior session, but gains were limited by ongoing concerns about the economic impact of Britain's vote to leave the European Union and a glut of crude.

U.S. crude CLc1 was up 13 cents $46.73 a barrel at 0017 GMT. The contract fell 5 percent to end at $46.60 on Tuesday as U.S. investors got to digest news of an OPEC increase in production after the July 4 holiday on Monday closed trading.

Brent futures LCOc1 were up 17 cents at $48.13. On Tuesday they settled down 4.3 percent at $47.96 a barrel.

Oil prices are up almost 80 percent from 12-year lows of around $27 for Brent and $26 for U.S. crude in the first quarter and they are ripe for supply shocks just as the so-called Brexit vote came as a body blow to global growth hopes.

The rebound in crude was fueled by supply outages from Canada to Nigeria that created the perception that a two-year-old supply glut may be easing.

But OPEC's oil output in June was its highest in recent history, as Nigeria's oil industry partially recovered from militant attacks and Iran and Gulf members boost supplies. OPEC/O

The yen JPY= rose further on Wednesday as investors hit the shelters with broad risk off mood gripping wider markets.

Sterling sank to a fresh 31-year trough early on Wednesday, having taken a turn for the worse as the first signs of markets seizing up emerged in the UK following the Brexit vote.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.