Crude Oil Futures Drop with Growing Concerns Regarding Global Growth and Brexit
On Tuesday, Crude oil futures dropped during early Asian trading hours with investor ignoring signs of tension in the market focusing more on concerns and sudden declines in stocks on worries of approaching vote on Brexit or the likely exit of Britain from the European Union.
On Monday, Brent crude futures dropped under the $50 per barrel level once more $49.79, by 0029 GMT.
Another benchmark, U.S. crude CLc1 also slid 53 cents, to $48.35 per barrel. The stronger greenback had an effect overnight in the oil market. The uncertainty over Brexit and the policy meeting of the U.S. Federal Reserve this week is keeping the oil prices down.
Along with the Brexit concerns, the growth in China is also pulling back the sentiments which are strong enough to keep the bullish signs at bay. Monday's government forecast that the U.S. shale oil output will likely drop in July for the seventh straight month could not do much to support oil prices.
At the beginning of the week, OPEC also said it expects the global supply of oil to be more balanced in the last six months of the year due to outages in Nigeria and Canada.