Brexit knocks the wind out of oil prices


A screen shows British Prime Minister David Cameron announcing his resignation after Britain voted to leave the EU in a referendum held on June 23, as traders work at the stock exchange in Frankfurt am Main, Germany, June 24, 2016.

Britain’s decision to leave the EU creates pessimistic expectations of demand for oil, causing the price to fall

On June 24, oil prices took a dive after nearly 52% of Britons voted to leave the European Union in a nationwide referendum. Oil prices initially slumped by more than 6%, as traders feared a wider economic slowdown that could reduce oil demand.

Brent crude LCOc1 was down $1.91 at $49 a barrel at 0849 GMT. US crude CLc1 was down $1.87 at $48.25 a barrel, according to Reuters. Earlier in the day, both contracts were down by more than $3, or over 6%, the biggest intra-day declines for both since...

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