Crude oil prices bounce around as the trade looks to a Brexit poll that suggests the “stay" campaign may be gaining momentum. It is becoming clear that if the UK votes to stay, then oil prices should move much higher.
Shares, crude oil and bond yields rose today after a tumultuous week and as campaigning for Britain's European Union membership referendum next week was suspended after the killing of a pro-"Remain" politician.
After it was reported that Cox had died, we saw a reversal in market sentiment. Gold prices, which were on a manic run surging above $1,300 an ounce and a two-year high, retreated and actually went lower on the day. The stock market came back from an oversold condition and a time to try to put things in perspective reigned. For crude oil, it seemed that it wasn’t enough as there was a sense that for that market, the damage was already done.
The Federal Reserve failed to inspire confidence that they have a handle on what is happening in the global economy. Fed Chair Janet Yellen, in a press conference, seemed to be more defensive about misleading the market explaining why she and other officials said this meeting was a live meeting and then doubled down by saying a July interest rate increase is not “impossible.”
In spite of the latest forecast from the International Energy Agency (IEA) yesterday suggesting that the global crude oil market is already rebalancing the market has been in a retracement mode since late last week